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14 May 2013
Two Georgia Men Plead Guilty to Gift Card SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Derrick Nathaniel Hartfield, age 45, of Smyrna, Ga., and Rico Carty Clemons, 47, of Riverdale, Ga., pleaded guilty Monday before U.S. District Court Judge Richard T. Haik to taking part in a scheme to defraud Wal-Mart and other retail business nationwide out of hundreds of thousands of dollars through identity theft and wire fraud.
According to evidence presented at the guilty plea, Hartfield and Clemons admitted they used the illegally obtained retail store gift cards and applied for credit/debit cards using other peoples’ identities. Hartfield acknowledged during the entry of his guilty plea that he had advised law enforcement officers that he may have obtained approximately one million dollars in cash since 2005 as a result of the scheme. A Calcasieu Parish Sheriff’s Office deputy working a security detail at a Lake Charles Wal-Mart on July 7, 2012, apprehended the defendant Hartfield in the store. The officer then identified Clemons who was in a parked vehicle. The two men were in possession of thousands of dollars and numerous debit and credit cards that were not in their names.Both defendants face a maximum penalty of 30 years in prison, a $1 million fine, restitution, and five years of supervised release for pleading guilty to one count of wire fraud. Hartfield faces a mandatory two years in prison consecutive to any other sentence, a $250,000 fine, restitution, and three years of supervised release for pleading guilty to one count of aggravated identity theft. A sentencing date has not been set.
The Calcasieu Parish Sheriff’s Office and the U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Brett L. Grayson is prosecuting the case.Two Doctors, Including A Psychiatrist for the U.S. Department of Veterans Affairs, and Two Others Charged in Brooklyn as Part of Nationwide Medicare Strike Force InitiativeRead the Press Release
Four individuals, including two doctors, have been charged for their alleged participation in two separate schemes that falsely billed the Medicare and Medicaid programs for more than $17 million.1 The charges filed in Brooklyn, New York, are part of a nationwide takedown by the Medicare Fraud Strike Force operations that led to charges against 89 individuals for their alleged participation in schemes to collectively submit approximately $223 million in fraudulent claims.
The Brooklyn cases were announced by United States Attorney Loretta E. Lynch of the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Thomas O’Donnell, Special Agent-in-Charge, Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations, New York. The results of the nationwide takedown were announced today by Attorney General Eric H. Holder, Health and Human Services Secretary Kathleen Sebelius, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, FBI Assistant Director Ron Hosko, Inspector General Daniel R. Levinson of HHS-OIG, and Centers for Medicare and Medicaid Services Deputy Administrator for Program Integrity Dr. Peter Budetti.
The two schemes charged in the Eastern District of New York, detailed in an indictment and a criminal complaint, and other documents filed by the government, are as follows:
Presman. Mikhail L. Presman, 55, a psychiatrist employed by the U.S. Department of Veterans Affairs (VA), was charged in a complaint with engaging in a scheme to submit false and fraudulent medicare claims while operating a private practice when not on duty at the VA. The complaint alleges that Presman submitted fraudulent claims to the Medicare program in excess of $4,000,000 for home medical visits for patients who were never seen by Presman, for patients whom Presman claimed to have treated when he was in fact away on vacation, and for patients who were confined in a hospital at the time that Presman claimed to have treated them. Presman received over $2,800,000 in Medicare payments as a result of this scheme. A search warrant was executed at Presman’s personal residence which purported to be his medical office. The Presman case is being prosecuted by Assistant United States Attorney Patricia E. Notopoulos and Trial Attorney Bryan Fields of the Criminal Division’s Fraud Section. The defendant is scheduled to be arraigned today before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn, New York.
Lee, et al. The indictment charges Chang Ho Lee, 66, a medical doctor, Michelle Lee, 58, the manager of several medical clinics, and Francis Choi, 54, a medical biller, with conspiracy to commit health care fraud, conspiracy to pay health care kickbacks, and falsification of records. Chang Ho Lee and Francis Choi are charged with health care fraud. Chang Ho Lee is separately charged with paying health care kickbacks. The charges arise from an approximately $13 million Medicare fraud scheme that took place at three clinics – two in Flushing, New York, and one in Brooklyn, New York – from approximately March 2007 to May 2012, in which patients were offered massages, facials, and other inducements and, in return, the clinic billed those patients’ Medicare numbers for physical therapy, lesion removals, and other procedures that were medically unnecessary and not provided. According to the indictment, when Medicare audited the clinics and asked for patient records in support of claims, the defendants created false patient records to submit to Medicare. The Lee case is being prosecuted by Trial Attorney Bryan Fields and Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section. The defendant is scheduled to be arraigned today before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn, New York.
“As alleged, these two prosecutions have exposed corrupt doctors and medical professionals who defrauded the Medicare program out of millions of dollars for their personal gain. With so many patients in desperate need of medical care, it is particularly galling that these defendants allegedly arranged Medicare-funded facials and massages and billed while on vacation,” stated United States Attorney Lynch. “Today’s arrests demonstrate our continuing commitment to vigorously prosecute all who drain taxpayer funds from the Medicare program – funds which would otherwise pay for needed care for elderly and disabled Americans.” Ms. Lynch extended her grateful appreciation to the United States Department of Veterans Affairs, Office of Inspector General, the New York State Office of the Medicaid Inspector General, the New York Attorney General’s Office, the New York State Medicaid Fraud Control Unit, the New York State Department of Financial Services, the New York City Police Department, and New York City Human Resources Administration for their assistance in the investigations in this district.
FBI Assistant Director-in-Charge Venizelos stated, “The two cases present glaring examples of abuse of the Medicare program. As alleged in the indictment and complaint, the common thread is unscrupulous medical professionals billing this taxpayer-funded program for millions of dollars of services that were either medically unnecessary or not provided at all. Alarmingly, one doctor allegedly billed for home visits when the patients were hospitalized and therefore not home, or when he himself was on vacation and not working. Medicare fraud threatens the vitality of the program and unjustly enriches lawbreakers, and it won’t be tolerated.”
“Individuals continue to defraud the Medicare and Medicaid systems at an alarming rate, said HHS-OIG Special Agent-in-Charge O’Donnell. We will continue to aggressively investigate all heath care fraud schemes.”
The Defendants:
MIKHAIL PRESMAN
Brooklyn, NYFRANCIS CHOI
Blauvelt, NYCHANG LEE
Palisade Park, NJMICHELLE LEE
Palisade Park, NJ_____________________________
1 The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Two Charged with Conspiring to Defraud the Government and Filing False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. - A resident of York, Pa., and a resident of Mahanoy City, Pa., have been indicted by a federal grand jury in Johnstown on charges of conspiracy to defraud the government and filing false and fictitious federal income tax returns, United States Attorney David J. Hickton announced today.
The 11-count indictment named Wendell Parker, 40, and Kimberly Lynn Snyder, 37.
According to the indictment, from April 2008 to Oct. 2010 Parker and Snyder conspired to file 72 false and fictitious income tax returns where they claimed tax refunds totaling $210,581, and from Dec. 15, 2008, to May 26, 2010, Parker prepared and filed federal income tax returns claiming refunds knowing the claimant's address, wage information and withholding information was false and fictitious.
The law provides for a maximum total sentence of 60 years in prison, a fine of $2,750,000, or both, for Parker; and 10 years in prison, a fine of $250,000, or both, for Snyder. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Twenty-Four South Florida Residents Charged as Part of Nationwide Coordinated Takedown by Medicare Fraud Strike Force OperationsRead the Press Release
89 Individuals Charged Nationally for Submitting
Approximately $223 Million in Fraudulent Billing; South Florida Responsible for more than $45,299,935 in False BillingsWifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Michael J. DePalma, Acting Special in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that twenty-four (24) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare out of more than $45,299,935 million. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in eight cities that resulted in charges against 89 individuals, including doctors, nurses and other licensed professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings.
U.S. Attorney Wifredo Ferrer stated, “Health care fraud continues to be a drain on scarce Medicare dollars, as unscrupulous individuals insist on using the Medicare Trust Fund as their private ATMs. We are undaunted and remain committed in our resolve to help preserve and protect Medicare for those who need it – the sick, the elderly and the poor.”
“Today’s announcement marks the latest step forward in our comprehensive efforts to combat fraud and abuse in our health-care systems,” said Attorney General Holder. “These significant actions build on the remarkable progress that the HEAT has enabled us to make – alongside key federal, state, and local partners – in identifying and shutting down fraud schemes. They are helping to deter would-be criminals from engaging in fraudulent activities in the first place. And they underscore our ongoing commitment to protecting the American people from all forms of health-care fraud, safeguarding taxpayer resources and ensuring the integrity of essential health-care programs.”
“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius. “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars. Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price. We will protect a sacred trust and an earned guarantee.”
“Today’s Medicare Fraud Strike Force takedown reminds us that South Florida remains ground zero for health care fraud. Almost one third of those charged in this eight-city operation were from the Miami area, accounting for more than $45 million in fraud,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami Division. “Health care fraud is a multi-billion dollar crime problem that is not going away. The FBI is committed to rooting out health care fraud and reclaiming money that was dishonestly obtained.”
“Taxpayers expect us to work harder and smarter, and that is exactly what happened here today,” said Christopher B. Dennis, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services, Miami region. “With the coordinated work of my agents and other law enforcement officials, we will not cease aggressive investigation and prosecution of those who exploit taxpayers and federal health programs. Today’s arrests clearly demonstrate our joint commitment with all our law enforcement partners to identify and rapidly address health care fraud.”
Michael J. DePalma, Acting Special in Charge for IRS-CI stated, “It is disappointing that these defendants opted for what many think is fast and easy money. But health care fraud is not a victimless crime. Health care fraud affects each of us, as tax dollars are stolen and squandered. IRS-CI will continue to lend its financial investigative expertise to ensure that fraudsters are not allowed to enjoy their ill-gotten gains. Together with our law enforcement partners we will continue to aggressively investigate health care fraud in South Florida.”
“This is what these operations are all about: coordinated takedowns such as this are at the heart of our Strike Force efforts to stop the illegal schemes that hurt victims in our communities and our government,” said USPIS Inspector in Charge Ronald Verrochio.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Specifically, the South Florida cases announced as part of the nationwide Medicare Fraud Strike Force takedown include:
1.U.S. v. Emilio Amador, Cristobal Gonzalez, Eduims Mora, Jose Contreras, and Elizabeth Monteagudo, Case No. 13-20315-CR-Lenard
Five defendants are charged with conspiracy to receive health care kickbacks and substantive counts of receiving kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a scheme involving Caring Nurse Home Health, Corp. and Good Quality Home Health, Inc. The defendants allegedly supplied patients to Caring Nurse and/or Good Quality in exchange for kickbacks and bribes. Caring Nurse and Good Quality, in turn, fraudulently billed Medicare for approximately $50 million for home health services that were not provided and/or were not medically necessary. If convicted, the defendants face up to five years for each count. This case is being prosecuted by Trial Attorney Joseph Beemsterboer of the Criminal Division’s Fraud Section2.United States v. Rafael Meana and Janet Farigola, Case No. 13-20275-CR-Middlebrookss
Defendants Rafael Meana and Janet Farigola are charged with conspiracy to commit health care fraud and several substantive counts of health care fraud. According to the indictment, the defendants participated in a scheme involving Lord’s Medical & Rehab Center, Inc. (Lords), a medical clinic that purportedly provided Medicare Advantage beneficiaries with medical items and services. From February 2010 through July 2011, Meana and Farigola allegedly caused Lord’s to submit approximately $5,497,047 in Medicare claims falsely claiming that health care benefits and services were medically necessary and had been provided to Medicare beneficiaries. As a result of the submission of these claims, Medicare paid Lord’s approximately $2,240,134. If convicted, the defendants face up to ten years in prison for each count of health care fraud. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.3.United States v. Jose Moran, Rafael Meana, and Armando Rubio Cordero, Case No.
13-20274-CR-Graham
The defendants are charged with conspiracy to commit health care fraud and several substantive counts of health care fraud. According to the indictment, the defendants participated in a scheme involving Lord Family Services, Inc., a medical clinic that purportedly provided Medicare Advantage beneficiaries with medical items and services. From January 2010 through September 2011, the defendants allegedly caused Lord Family Services, Inc. to submit approximately $1,919,751 in Medicare claims falsely claiming that health care benefits and services were medically necessary and had been provided to Medicare beneficiaries. As a result of the submission of these claims, Medicare paid Lord Family Services, Inc. approximately $976,476. If convicted, the defendants face up to ten years in prison for each count of health care fraud. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.4.United States v. Karina Merino, Case No. 13-20332-CR-Martinez
Defendant Karina U. Merino is charged with a single count of health care fraud in connection with her role in a massive health care fraud scheme involving Ideal Home Health, Inc. (Ideal), which submitted more than $40 million in fraudulent claims to Medicare. The Information alleges that Merino, as a nurse for Ideal, falsified patient visitation logs to reflect that home health care nursing services had been provided to beneficiaries when such services had, in fact, not been provided. Ideal fraudulently billed the Medicare program for approximately $148,000. If convicted of the health care fraud charge, Merino faces up to ten years in prison. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.5. United States v. Delia Y. Chaveco and Arturo Y. Chaveco, Case No. 13-20333-CR-Moore
Delia Y. Chaveco and Arturo Y. Chaveco (the Chavecos) were charged by Information with a single count of conspiracy to receive kickbacks in connection with a federal health care benefit program. This charge stems from the Chavecos’ role in a health care fraud scheme involving Ideal Home Health Inc. (Ideal), an agency that submitted more than $40 million in fraudulent claims to the Medicare program. The Information alleges that Ideal and other Miami-Dade area home health agencies paid the Chavecos kickbacks in exchange for recruiting Medicare beneficiaries that they later used to bill the Medicare program. If convicted, the defendants face up to five years in prison. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.6. United States v. Roberto Marrero, Sandra Fernandez Viera and Enrique Rodriguez, Case No. 13-20318-CR-Moore
In this case, the defendants are charged with conspiracy to commit health care fraud, conspiracy to receive and pay health care kickbacks, and substantive kickback charges. Defendants Roberto Marrero and Sandra Fernandez Viera were the owners and operators of Trust Care Health Services, Inc. (Trust Care), which allegedly paid kickbacks and bribes to patient recruiters and beneficiaries to obtain Medicare beneficiaries, and then submitted more than $20 million in false and fraudulent claims to Medicare, primarily for skilled nursing diabetic care and physical/occupational therapy. Defendant Enrique Rodriguez worked as a patient recruiter for Trust Care, supplying patients in exchange for kickbacks and bribes. A civil injunction is being filed under 18 U.S.C. § 1345 to restrain the defendants’ assets to satisfy restitution in the criminal matter. If convicted, the defendants face up to ten years for the health care fraud charges and five years for each count of the kickback charges. This case is being prosecuted by Trial Attorney Brendan Stewart of the Criminal Division’s Fraud Section and the civil injunction is being handled by Civil Health Care Fraud Coordinator Assistant U.S. States Attorney Mark Lavine.7. United States v. Dora Moreira, Ivan Alejo, and Hugo Morales, Case No. 13-20298-CR-Martinez
In this case, the defendants are charged with conspiracy to commit health care fraud, conspiracy to receive and pay health care kickbacks, substantive kickback charges, conspiracy to commit money laundering, and substantive money laundering. Defendant Dora Moreira was the owner and operator of Anna Nursing Services Corp. (Anna Nursing), which paid kickbacks and bribes to patient recruiters and beneficiaries to obtain Medicare beneficiaries. Anna Nursing was paid more than $7 million for the false claims it submitted to Medicare, which claims were primarily for physical/occupational therapy. Defendant Ivan Alejo worked at Anna Nursing, and was responsible for, among other things, negotiating kickback rates and distributing kickback payments to patient recruiters on behalf of Anna Nursing. Defendant Hugo Morales worked as a physical therapist on behalf of Anna Nursing, and was responsible for, among other things, fabricating patient medical documentation. Defendant Dora Moreira laundered money for the purpose, among others, of concealing the proceeds of the fraud and the payment of kickbacks to recruiters. The Asset Forfeiture Section has obtained restraining orders on the corporate bank account and on real property that is traceable to the fraud. If convicted, the defendants face up to ten years for the health care fraud charges, five years for each count of the kickback charges, and twenty years for the money laundering charges. This case is being prosecuted by Trial Attorney Brendan Stewart of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eloisa Fernandez of the Asset Forfeiture Section.8. United States v. Marina Sanchez Pajon and Miguel Jimenez, Case No. 13-20299-CR-Ungaro
Defendants are charged with conspiracy to commit health care fraud, conspiracy to receive and pay health care kickbacks, and substantive kickback charges. Defendants Marina Sanchez Pajon and Miguel Jimenez were the owners and operators of Flores Home Health Care Inc. (Flores Home Health), which allegedly paid kickbacks and bribes to patient recruiters and beneficiaries to obtain Medicare beneficiaries. Flores Home Health was paid more than $8 million for the false claims it submitted to Medicare, which claims were primarily for physical/occupational therapy. The Asset Forfeiture Section has obtained seizure warrants and restraining orders on five vehicles and bank accounts containing $160,000. They have also filed lis pendens against four real properties that were purchased with proceeds of the fraud. If convicted, the defendants face up to ten years for the health care fraud charges and five years for each count of the kickback charges. This case is being prosecuted by Trial Attorney Brendan Stewart of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Timothy Abraham of the Asset Forfeiture Section.9. United States v. Miguel A. Rodriguez, Case No. 13-20319-CR-Lenard
Defendant Miguel A. Rodriguez is charged with three counts of paying kickbacks in connection with a federal health care program. The defendant allegedly paid kickbacks and bribes to induce medical providers to refer Medicare beneficiaries to his medical company for services, including x-rays. If convicted, the defendant faces up to five years in prison for each count of the kickback charges. This case is being prosecuted by Assistant U.S. Attorney John Gonsoulin.10. United States v. Enrique Alberto Siret Rodriguez, Case No. 13-20284-CR-Moore
Defendant Enrique Alberto Siret Rodriguez is charged with four counts of health care fraud and two counts of paying kickbacks in connection with a federal health care program. The defendant allegedly paid kickbacks and bribes to a doctor for fraudulent home health care prescriptions that could be used to fraudulently bill Medicare. If convicted, the defendant faces up to 10 years in prison for each health care fraud count and up to five years for each of the kickback counts. This case is being prosecuted by Assistant U.S. Attorney John Gonsoulin.11. United States v. Alberto Cosme Garcia, Case No. 13-20283-CR-Ungaro
Defendant Alberto Cosme Garcia is charged with one count of health care fraud and two counts of paying kickbacks in connection with a federal health care program. The defendant allegedly paid kickbacks and bribes to a doctor for fraudulent home health care prescriptions that could be used to fraudulently bill Medicare. If convicted, the defendant faces up to 10 years in prison for the health care fraud count and up to five years for each of the kickback counts. This case is being prosecuted by Assistant U.S. Attorney John Gonsoulin.Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG, USPIS and IRS-CI.
An indictment and Information are merely charges and defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tulalip Tribal Member Indicted for Second Degree Murder in Death of ToddlerRead the Press Release
A federal grand jury in Seattle today indicted CHRISTINA D. CARLSON, 37, an enrolled member of the Tulalip Tribes with second degree murder and two counts of criminal mistreatment related to the October, 2012 death of her young daughter and the neglect of her second daughter, announced U.S. Attorney Jenny A. Durkan. CARLSON will be arraigned on the indictment on May 23, 2013 in U.S. District Court in Seattle.
CARLSON has been in federal custody at the Federal Detention Center at SeaTac, Washington, since January 11, 2013. CARLSON was originally charged by a criminal complaint which is the sworn statement of the investigating agent. To proceed to trial a defendant must be indicted by a grand jury. That indictment, listing the three charges, was returned today. The criminal complaint described how on October 8, 2012, emergency crews were called to an address on Marine Drive NE on the Tulalip Tribal Reservation where CARLSON was performing CPR on her 19-month-old daughter who was unresponsive on a blanket on the ground. The child was unconscious, not breathing and covered in urine and feces. A second child, a 33-month old girl, was found strapped in her car seat in a nearby vehicle. The child was pale, unresponsive and covered in urine and feces. The girl was transported to the hospital and later recovered. The 19-month old child died and the Snohomish County Medical examiner classified the manner of death as homicide by parental neglect. According to the report the child was malnourished and dehydrated, weighing only 19 pounds. The child’s skin in the diaper area was excoriated and infested with maggots. Her hair was infested with lice.
The investigation revealed that CARLSON had been living in the car with the girls on the property since mid-September. On October 8, 2012 CARLSON had left the girls in the car while she went to use a phone at the residence on the property. CARLSON was away from the car for more than an hour by some estimates. About 20 minutes after the neighbors told her to go back to the car and her children, CARLSON returned asking them to call 9-1-1 because the youngest child was unresponsive.
Second Degree Murder is punishable by up to life in prison, with a mandatory minimum 30 years in prison for the death of a child. Criminal mistreatment is punishable by up to ten years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Tulalip Tribal Police and the FBI. The case is being prosecuted by Assistant United States Attorney J. Tate London.
Three New Castle Residents Admit Being Part of Prescription Drug RingRead the Press Release
PITTSBURGH - Three residents of New Castle, Pa., pleaded guilty in federal court to a charge of violating the federal drug laws, United States Attorney David J. Hickton announced today.
Thomas Klingensmith, Sr., age 58; Bobbi Jo Klingensmith, age 35; and Shannon Viggiano, 34, pleaded guilty to one count of conspiracy before United States District Judge Arthur J. Schwab.
In connection with the guilty pleas, the court was advised that between September 2008 and June 2011, a drug ring operated in the New Castle area, selling highly-addictive narcotic pills containing oxycodone on the street to drug users. Larry Dorsey, a former New Castle resident who was living in Florida during the conspiracy, was the supplier of nearly 50,000 pills to Chris Klingensmith and the others charged in this indictment. Thomas Klingensmith, Sr. - the father of Chris Klingensmith - Bobbi Jo Klingensmith, and Shannon Viggiano sold oxycodone in New Castle. In September 2010, co-defendant David Wooley was stopped by police in North Carolina, on his way to Florida. A search of his car turned up $158,409 in cash, hidden inside a door. The evidence showed that the oxycodone purchased for $14 a pill in Florida was being resold in New Castle for up to $25 a pill. Approximately a half million dollars in cash was seized in this investigation.
Judge Schwab scheduled sentencing for Sept. 6, 2013 at 9:30 a.m. for Thomas Klingensmith, Sr.; Sept. 17, 2013 at 9 a.m. for Bobbi Jo Klingensmith; and Nov. 18, 2013 at 8:30 a.m. for Shannon Viggiano. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the New Castle Police, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Thomas Klingensmith, Sr., Bobbi Jo Klingensmith, and Shannon Viggiano.
Three Men Plead Guilty to Conspiring to Distribute More Than 500 Grams of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two Twin Cities-area men pleaded guilty to conspiring to distribute more than 500 grams of methamphetamine, among other drugs. Jose Francisco Hernandez-Perez, age 26, of West St. Paul, and Jose Enrique Mederos-Benitez, age 23, of Minneapolis, pleaded guilty to one count of conspiracy to distribute methamphetamine. In addition, Mederos-Benitez pleaded guilty to one count of using, carrying, and possessing a firearm during and in relation to a drug-trafficking crime. Both men were indicted on January 8, 2013, and entered their pleas before United States District Court Judge David S. Doty.
In their plea agreements, the defendants admitted that from the fall of 2012 through December 11, 2012, they, along with Fabio Adolpho Medal Lopez, age 57, of West St. Paul, conspired to distribute more than 500 grams of methamphetamine. On December 11, Mederos-Benitez and Hernandez-Perez had 1,786 grams of methamphetamine in the front seat of the car they were driving. Officers found the drugs when they stopped the car near the intersection of Robert Street and Thompson Avenue in West St. Paul. The men admitted they intended to distribute the methamphetamine later that day. Unknown to them, the buyer was an undercover officer. At the time of the stop, Mederos-Benitez also had a loaded .380-caliber, semi-automatic handgun tucked in his waistband. In a later search of Hernandez-Perez’s apartment, officers seized 903.9 grams of cocaine, 262.8 grams of methamphetamine, a scale, cutting agents, and other drug-related items.
On April 18, 2013, Lopez pleaded guilty to one count of conspiracy in connection to this case. In his plea agreement, he admitted conspiring with others to distribute methamphetamine. On October 23, November 19, and December 11, 2012, Lopez sold methamphetamine, totaling 216.7 grams, to a confidential informant.
For their crimes, all three defendants face a potential maximum penalty of life in federal prison, with a mandatory minimum penalty of ten years. In addition, Mederos-Benitez faces a consecutive 60-month sentence on the firearm charge, with a mandatory minimum consecutive sentence of five years. Because the federal criminal justice system does not have parole, offenders spend virtually the entire prison sentence imposed behind bars.
This case is the result of an investigation by the U.S. Drug Enforcement Administration, the St. Paul Police Department, and the Minnesota State Patrol. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.
Three Fitchburg Men Plead Guilty to Distributing CrackRead the Press Release
BOSTON – Three Fitchburg men were convicted today in federal court on charges related to the distribution of crack cocaine.
Charles Simmons, a/k/a B, 24, pleaded guilty to conspiracy to distribute cocaine base and six counts of distribution of cocaine base. Michael Dorzin, a/k/a Bonz, 24, pleaded guilty to conspiracy to distribute cocaine base and two counts of distribution of cocaine base. Andre Dorzin, a/k/a Wish, 26, pleaded guilty to conspiracy to distribute cocaine base and four counts of distribution of cocaine base. U.S. District Judge Timothy S. Hillman scheduled sentencing for August.
Between July 2011 and October 2011, Simmons, Michael Dorzin, and Andre Dorzin participated in a conspiracy to distribute crack cocaine to a cooperating witness and on seven separate dates the conspirators distributed crack cocaine to the cooperating witness.
For conspiracy to distribute crack cocaine, the statutory mandatory minimum penalty is five years and up to 40 years in prison, followed by a period of supervised release (minimum of four years and up to life) and a $5 million fine. The distribution charge has a statutory maximum penalty of 20 years in prison, followed by a period of supervised release (minimum of three years and up to life) and a $1 million fine.
In January 2012, all three co-conspirators were arrested as part of Operation Red Wolf, a multi-agency investigation targeting gang members involved in drug dealing and firearms distribution in the Fitchburg area. Fourteen individuals have been charged in federal court as a result of that operation. To date, 12 of the 14 have been convicted, the remaining two await trial.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Fitchburg Police Chief Robert A. DeMoura; Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Cory Flashner, Mark Grady and Karin Bell of Ortiz's Worcester Branch Office Unit.Three Charged in Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - Two Pennsylvania men and a resident of Texas have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The three-count indictment named William E. Wilson, Jr., 42, of Penn Hills, Pa.; Leland Ty Cobbs, 42, of Pittsburgh, Pa.; and Faustino Rodriguez Hernandez a/k/a David Chavez Carbajal, 36, of Conroe, Texas, as defendants.
According to the indictment, on or about April 23, 2013, the defendants conspired with one another, and with others, to distribute and possess with intent to distribute five kilograms or more of a mixture and substance containing a detectable amount of cocaine. Additionally, the indictment alleges that on or about April 23, 2013, the defendants distributed and possessed with intent to distribute five kilograms or more of a mixture and substance containing a detectable amount of cocaine.
The indictment also charges that on or about April 23, 2013, Wilson, Jr., being a convicted felon, illegally possessed a Glock, .40 caliber pistol and a Springfield XDm .45 caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the District Attorney's Narcotics Enforcement Team (DANET), the Swissvale Police Department and the Penn Hills Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Arrested, Charged in New Jersey for Multimillion-Dollar Fraud Offering Phony “pre-ipo” Facebook SharesRead the Press Release
One Conspirator Allegedly Committed Crimes While Federally Indicted in Unrelated Scam
NEWARK, N.J. – Federal law enforcement officers with the FBI and IRS-Criminal Investigationarrested three menat their homesthis morning on charges they stole approximately $6.7 million from an investor, in part by claiming special access to shares in the social media company Facebook Inc., prior to the company’s initial public offering, New Jersey U.S. Attorney Paul J. Fishman announced.
One of the men, Eliyahu Weinstein, 37, of Lakewood, N.J., faces additional charges for allegedly committing the fraud while under federal indictment in New Jersey for a separate real estate investment scheme.
Weinstein, Alex Schleider, 47, of Lakewood, and Aaron Muschel, 63, of Brooklyn, N.Y., are expected to appear on the charges this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.
“According to the charges, the defendants took advantage of the buzz around the Facebook IPO to fleece unsuspecting investors,” said U.S. Attorney Fishman. “Shamelessly, Eliyahu Weinstein allegedly committed these crimes while under federal indictment for another investment scheme, even using stolen money to pay his legal fees. Today’s arrest should put an end to his brazen conduct.”
“Today’s charged conduct is another example of the cautionary tale that if an opportunity seems to be too good to be true, it probably isn’t,” said FBI Special Agent in Charge Aaron T. Ford. “More than ever, the investing public must exercise the appropriate amount of due diligence before investing with new or unknown entities. This is highlighted by the fact that one of today’s charged individuals is currently awaiting sentencing on a previous fraud conviction.”
According to the complaint in this case and other documents filed in court:
In February of 2012, Weinstein and his fellow conspirators offered investors the opportunity to purchase large blocks of Facebook shares prior to the company’s IPO in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get, and they were expected to increase in value at the time of the IPO. Weinstein, Schleider and Muschel did not actually have access to the shares.
Based on misrepresentations by Weinstein, Schleider, Muschel and another conspirator, an investor victim – described in the complaint as “G.C.” – wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and Schleider convinced G.C. to send the money by, among other things, providing the victim with false documents showing companies owned by various conspirators held assets which would secure G.C.’s investment.
The conspirators did not use any of G.C.’s money to purchase Facebook shares, instead misappropriating it for their own use and benefit by moving it through various accounts. Weinstein used some of the money to pay lawyers and experts representing him in his pending criminal case and in pending civil matters. Weinstein, Schleider and Muschel also used G.C.’s money to make investments in a number of different businesses unrelated to Facebook, and to make loans for their own benefit.
Throughout the scheme, Weinstein was under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty in January 2013, before U.S. District Judge Joel A. Pisano in Trenton, N.J., to two counts of that indictment, admitting he ran a real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme.Weinstein, Schleider and Muschel are variously charged in the 13-count complaint unsealed today. The charges against each and the maximum potential penalty per count are as follows:
Count(s)
Charge
Charged Defendants
Maximum Potential Penalty/Count
wire fraud conspiracy
Weinstein, Schleider, Muschel
20 years in prison; $250,000 fine, or twice the gain or loss from the offense
2 – 6
wire fraud while on pretrial release
Weinstein
30 years in prison (10 years consecutive to 20 years for wire fraud); $250,000 fine, or twice the gain or loss from the offense
7 – 13
transacting in criminal proceeds
Weinstein, Muschel
10 years in prison; $250,000 fine, or twice the gain or loss from the offense
Additionally, the government is seeking the seizure and forfeiture of all funds fraudulently obtained by the defendants, including three pieces of real property allegedly maintained with the proceeds of the scheme.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work leading the investigation of this case. He also credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their important contributions.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Assistant U.S. Attorneys Gurbir S. Grewal and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit; and Evan S. Weitz of the Office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations against the defendants are merely accusations, and they are considered innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-196
Defense counsel:
Eliyahu Weinstein: Henry E. Klingeman Esq., Newark; Mark D. Harris Esq., New York
Alex Schleider: Andrew Citron Esq., Forest Hills, N.Y.
Aaron Muschel: James T. Moriarty Esq., New York
Weinstein, Eliyahu et al. Complaint
Sutton Man Sentenced for Mortgage FraudRead the Press Release
BOSTON – A Sutton, Mass., man was sentenced today in U.S. District Court in Springfield for bank fraud and making false statements on a loan application.
Jeffrey Dodge, 53, was sentenced by U.S. District Judge Michael A. Ponsor to one day in prison, followed by two years of supervised release, and ordered to pay $135,494 restitution to the U.S. Department of Housing and Urban. In February 2013, Dodge pleaded guilty to bank fraud and false statement on a loan application.
Between June 2006 and November 2006, Dodge supplied false information and false documents to Bank of America when applying for a government-guaranteed mortgage loan. Dodge falsely stated that he had not been foreclosed upon when, in fact, he had just months earlier been foreclosed upon after defaulting on another government mortgage loan.
United States Attorney Carmen M. Ortiz and Cary A. Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, New York Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Alex J. Grant of Ortiz's Springfield Branch Unit and Michelle L. Dineen Jerrett of Ortiz's Health Care Fraud Unit.
Spring Man Among Three Charged in Stolen Identity Refund Fraud ConspiracyRead the Press Release
HOUSTON – Jason Maclaskey, 33, has been charged with conspiracy, theft of government funds and aggravated identity theft related to his participation in a scheme to use stolen identities to file fraudulent tax returns, United States Attorney Kenneth Magidson announced today.
The 23-count indictment, returned March 6, 2013, charges Maclaskey, of Spring, as well as Heather Dale, 23, of Grant, Ala., and Omar Butt, 29, of Brooklyn, N.Y. All are charged with one count of conspiracy and one count of theft of public money. Dale and Butt are charged with seven and two counts, respectively, of aggravated identity theft, while Maclaskey faces nine counts on that charge. Maclaskey was further indicted on one count of access device fraud as well as one count each of being a fugitive in possession of a weapon and possession of a stolen weapon.
The three defendants were also indicted in Nevada for a similar fraud scheme and are currently pending trial there as well.
Maclaskey will make his initial appearance at 2:00 p.m. today before U.S. Magistrate Judge Stephen Smith, at which time the government is expected to request he be detained pending further criminal proceedings in this case. Dale and Butt made appearances last week and were both permitted release upon posting bond.
According to the indictment, the defendants unlawfully obtained names, dates of birth and Social Security numbers from 371 taxpayers and filed false tax returns in their names in 2009. The defendants allegedly used this information to also set up fraudulent bank accounts at Inter National Bank and through NetSpend debit cards in the taxpayers’ names and then directed the tax refunds to these accounts. The indictment alleges they withdrew this money using the NetSpend debit card at ATMs and by making purchases at various retail stores. Through this conspiracy, the defendants claimed a total of more than $1.4 million in false tax refunds and succeeded in withdrawing approximately $300,000.
Additionally, the indictment alleges Maclaskey was in possession of 10 firearms, one of which was stolen, on Nov. 1, 2011. At the time these weapons were seized, Maclaskey was a fugitive.
If convicted of conspiracy, all face up to five years in prison and a maximum of 10 years for theft of public money. Both of those convictions also carry a possible $250,000 fine. Maclaskey faces 10 years and $250,000 fines on each of the access device fraud and weapons counts, if convicted. For the aggravated identity theft charges, each defendant faces a mandatory two-year-term as to each count, which must be served consecutively to each other and to the other sentences imposed.
The investigation that led to this indictment was conducted by agents from Internal Revenue Service – Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Sharad S. Khandelwal is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Southwest Florida Men Sentenced on Federal Bank Robbery ChargesRead the Press Release
Fort Myers, Florida - U.S. District Judge John E. Steele sentenced Michael James Harrell (33, Fort Myers) and Matthew Rollins (27, Fort Myers) yesterday for armed bank robbery, possession of a firearm during a crime of violence, attempted bank robbery, conspiracy to commit armed bank robbery and conspiracy to use firearms during a crime of violence. These crimes relate to a series of bank robberies that took place in Lee County, during the summer and fall of 2011. Harrell was sentenced to 62 years in federal prison. Rollins was sentenced to 42 years in federal prison. A third participant, Maurice Andre Colbert (28, Fort Myers), will be sentenced on June 20, 2013.
According to evidence presented at trial, from June 6, 2011 through October 7, 2011, Harrell, Rollins, Colbert, and another individual conspired to rob area banks with firearms. In addition to the conspiracy, the jury found that the men were guilty of armed robbery and related weapons charges related to robberies of the following financial institutions: Lee County Postal Employees Credit Union (Harrell, Colbert - June 6, 2011); Wells Fargo Bank, Lehigh Acres (Harrell, Rollins - August 12, 2011); Preferred Community Bank, Lehigh Acres (Harrell, Rollins - August 31, 2011).
The jury also found all three men guilty of the attempted robbery of the following financial institutions: Wells Fargo Bank, Bonita Springs (September 14, 2011 - Harrell, Rollins, Colbert); Capital Bank, Fort Myers (October 4, 2011 - Harrell, Rollins, Colbert); Fifth Third Bank, Fort Myers (October 7, 2011 - Harrell, Colbert).
This case was the result of a cooperative investigative effort among the following federal, state, and local law enforcement agencies: the Federal Bureau of Investigation, Lee County Sheriff's Office, Fort Myers Police Department, Florida Department of Law Enforcement, Charlotte County Sheriff's Office, Collier County Sheriff's Office, Cape Coral Police Department, Punta Gorda Police Department, and the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
South Carolina Man Sentenced to 10 Years in Prison for Transporting Stolen Weapons into New JerseyRead the Press Release
Cache Included Military-Style Assault Rifles, Handguns and Shotgun
NEWARK, N.J. – A South Carolina man was sentenced today to 120 months in prison for his role in transporting into New Jersey 22 firearms that were stolen from gun shops in Tennessee and North Carolina, U.S. Attorney Paul J. Fishman announced.
Bevan Holston, 41, of Columbia, S.C., previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an Information charging him with one count of transporting stolen firearms in interstate commerce. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On March 7, 2012, Bassir Baxter, 40, of Columbia, S.C., Cedric Reddick, 20, and, his father, Holston allegedly drove from South Carolina to the apartment of Terrell James, 23, of Newark, to illegally sell the firearms. All four were charged by Complaint with transporting stolen firearms in interstate commerce.
The four men allegedly entered the apartment, where there were approximately 10 other individuals, and displayed firearms on the floor for the potential buyers. In total, 22 guns were recovered, including semi-automatic handguns and military-style assault rifles. Twenty had been stolen March 1, 2012, from a gun shop in Bristol, Tenn. Two of the guns had been stolen Feb.16, 2012, from a gun shop in Boone, N.C. Police arrested James and Baxter inside the apartment. Reddick and Holston were arrested after jumping to a rooftop from the kitchen window.
In addition to the prison term, Judge Wigenton sentenced Holston to three years of supervised release. The other three defendants are awaiting sentencing.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Essex County Prosecutor's Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Samuel DeMaio and Police Chief Sheilah Coley, with the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney José R. Almonte of the U.S. Attorney's Office Narcotics/OCDETF Unit.
Defense counsel: Stephen Dratch Esq., Livingston
13-198Smithfield Drug Dealer Sentenced to 45 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever, III sentenced GREGORY DEVON OBEY, 29, of Smithfield, North Carolina, to 540 months imprisonment followed by 8 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on August 8, 2012, charging OBEY with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 280 Grams or More of Cocaine Base (Crack) and 5 kilograms or More of Cocaine, in violation of Title 21, United States Code, Section 846, 1 count of Distribution of Cocaine, 1 count of Aiding and Abetting Distribution of Cocaine, and 5 counts of Distribution of 28 Grams or More of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841. On January 25, 2013, after a 3 day trial, a jury convicted OBEY of a drug conspiracy and all seven drug distribution counts.
The evidence in the case demonstrated that from at least March 2011, up to and including June 13, 2012, OBEY was involved in a drug conspiracy with several other individuals in the Smithfield area in a loose conspiracy to distribute cocaine and crack cocaine. Specifically, OBEY made statements immediately after his arrest and identified his sources of supply in the Smithfield area. All told, as part of the conspiracy, OBEY was held accountable for over 45 kilograms of crack cocaine and 18 kilograms of powder cocaine. The evidence further showed that from August 30, 2011, up to and including June 13, 2012, OBEY sold cocaine and crack cocaine on 7 different occasions to a confidential informant working for the Smithfield Police Department and Johnston County Sheriff’s Office. Other sources of information identified OBEY as a drug dealer as well. Finally, during the trial, evidence was introduced showing that OBEY was involved in threats made to the confidential informant in July 2012.
Investigation of this case was conducted by the Smithfield Police Department, the Johnston County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Seventeen Individuals Sentenced During the Month of April for Federal Supervised Release and Probation ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of April, 2013, seventeen individuals had their supervised release or probation revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
JESSE TALERICO, age 26, of Steubenville, Ohio, was sentenced to 9 months imprisonment for failing to submit monthly reports in a timely manner, failure to follow instructions of probation officer and absconding from supervision. TALERICO was originally sentenced on September 14, 2009, to 3 years probation for possession with intent to distribute heroin. On July 2, 2012, TALERICO’s probation was revoked and he was sentenced to 3 months imprisonment and 3 years of supervised release. TALERICO was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MATTHEW IAN HAUGHT, age 30, of Follansbee, West Virginia, was sentenced to 3 months imprisonment to be followed by 33 months of supervised release for use and possession of controlled substances and failure to report for scheduled drug screens. HAUGHT was originally sentenced on August 14, 2009, to 33 months imprisonment and 3 years of supervised release for being a drug addict in possession of a firearm. HAUGHT will self-report to the designated Federal institution.
CRAIG ELMORE, age 25, of Weirton, West Virginia, was sentenced to 2 months imprisonment to be followed by 58 months of supervised release for possession and use of controlled substances; failure to report to probation officer; failure to participate in testing, counseling and treatment for drug abuse; and failure to notify probation officer to change in residence or employment. ELMORE was originally sentenced on August 25, 2008, to 46 months imprisonment and 5 years of supervised release for conspiracy to distribute more than
50 grams of cocaine base. On November 1, 2011, ELMORE’s sentence was reduced to 30 months imprisonment pursuant to the crack re-sentencing guidelines. ELMORE will self- report to the designated Federal institution.The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorney Randolph J. Bernard.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
JOSHUA BLEAU BARNETT, age 34, of Dunbar, West Virginia, was sentenced to 18 months imprisonment for absconding from supervision, failure to report to the probation officer and failure to follow the instruction of the probation officer. BARNETT was originally sentenced on September 2, 2004, to 33 months imprisonment and 3 years of supervised release for theft of firearms from a federally licensed firearms dealer. On May 17, 2012, BARNETT’s supervised release was revoked for possession and use of controlled substances and failure to report for drug testing and he was sentenced to 6 months imprisonment and 30 months supervised release. BARNETT was remanded to the custody of the United States Marshal pending designation to a Federal institution.ROBERT WALLS, age 45, of Morgantown, West Virginia, was sentenced to 15 months imprisonment for failure to notify probation officer before obtaining any prescription medications, failure to truthfully answer inquiries of probation officer, failure to follow instructions of probation officer, possession and use of a prescription medication, failure to participate in substance abuse counseling, and state conviction for doctor shopping. WALLS was originally sentenced on July 11, 2008, to 12 months and 1 day imprisonment and 3 years of supervised release for possession, sale and disposal of a firearm. On September 6, 2011, WALLS’ supervised release was revoked and he was sentenced to 9 months imprisonment and
27 months of supervised release. WALLS was remanded to the custody of the United States
Marshal pending designation to a Federal institution.JENNIFER L. KELLY, age 30, of Bridgeport, West Virginia, was sentenced to 14 months imprisonment for testing positive for the use of controlled substances, failure to appear for a drug screen and a new misdemeanor citation for possession of drug paraphernalia. KELLEY was originally sentenced on November 5, 2007, to 15 months imprisonment and 6 years of supervised release for the distribution of cocaine base within 1,000 feet of a playground. On August 26, 2011, KELLEY’s supervised release was revoked for testing positive for the use of controlled substances and failure to report for a drug test and she was sentenced to 18 months imprisonment and 54 months of supervised release. KELLEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
STEVIE LAMAR STEPHENS, age 32, of Morgantown, West Virginia, was sentenced to 12 months and 1 day imprisonment for testing positive for the use of marijuana on two separate occasions. STEPHENS was originally sentenced on January 3, 2006, to 41 months imprisonment and 6 years of supervised release for the distribution of cocaine base within
1,000 feet of a school. On March 14, 2008, STEPHENS sentence was reduced to 33 months imprisonment pursuant to the crack re-sentencing guidelines. STEPHENS will self-report to the designated Federal institution.JOSEPH SPENCE, age 27, of Rachel, West Virginia, was sentenced to 12 months imprisonment for unlawful use and possession of a controlled substance, failure to report for drug testing on two occasions and four new traffic citations. SPENCE was originally sentenced on January 23, 2008, to 20 months imprisonment and 3 years of supervised release for the distribution of cocaine base. On June 24, 2010, SPENCE’s supervised release was revoked for testing positive for the use of controlled substances and he was sentenced to 10 months imprisonment and 26 months of supervised release. SPENCE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
HAROLD WEIGHTMAN WILLIAMS, III, age 42, of Clarksburg, was sentenced to
12 months imprisonment for failure to update sex offender registration, change in residence without permission and failure to submit to drug testing. WILLIAMS was originally sentenced on February 13, 2003, to 110 months imprisonment and 3 years of supervised release for being a convicted felon in possession of a firearm. On October 27, 2011, WILLIAMS’ supervised release was revoked for failure to follow instructions of the probation officer, failure to submit to drug testing, use of marijuana and change of residence without permission and he was sentenced to 2 months imprisonment and 34 months of supervised release. On February 1, 2012, WILLIAMS’ supervised release was once again revoked for testing positive for the use of cocaine and he was sentenced to 10 months imprisonment and 24 months of supervised release. WILLIAMS was remanded to the custody of the United States Marshal pending designation to a Federal institution.CRAIG WAYNE SINGLETON, age 52, of Clarksburg, was sentenced to 5 months imprisonment to be followed by 67 months of supervised release for failure to follow instructions of probation officer, failure to participate in substance abuse counsel, failure to report for drug testing, frequenting places where controlled substances are used and associating with persons involved in criminal activity. SINGLETON was originally sentenced on April 5, 2007, to 63 months imprisonment and 6 years of supervised release for the distribution of cocaine base within 1,000 feet of a protected location. On October 31, 2008, SINGLETON’s sentence was reduced to 41 months imprisonment pursuant to the crack re- sentencing guidelines. SINGLETON will self-report to the designated Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Shawn A. Morgan, Brandon S. Flower and Zelda E. Wesley.MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
DELMAR HOZA CURRY, age 32, of Martinsburg, West Virginia, was sentenced to
18 months imprisonment for failure to submit timely monthly reports, conviction for no operators, arrest on two counts of possession with intent to deliver a controlled substance, failure to report police contact with probation officer and failure to truthfully answer the probation officer’s inquiry. CURRY was originally sentenced on December 2, 2002, to 78 months imprisonment and 60 months of supervised release for possession with intent to distribute cocaine. On July 21, 2010, CURRY’s supervised release was revoked for failure to report for drug testing and failure to attend treatment program and he was sentenced to 5 months imprisonment and 48 months of supervised release. CURRY was remanded to the custody of the United States Marshal pending designation to a Federal institution.SHANNON JAMES BARNEY, age 30, of Martinsburg, was sentenced to 18 months imprisonment for use of controlled substances, failure to notify probation office of address change, failure to follow probation officer’s directions and committing a new federal, state or local crime. BARNEY was originally sentenced on May 9, 2012, to 27 months imprisonment and 3 years of supervised release for the possession with intent to distribute heroin. BARNEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JUSTIN AARON KESECKER, age 29, of Hedgesville, West Virginia, was sentenced to 16 months imprisonment for leaving the judicial district without permission, testing positive for the use of controlled substances, being untruthful with probation officer and possession of heroin. KESECKER was originally sentenced on October 18, 2011, to 2 years probation for assaulting, resisting and impeding a United States Postal Clerk with the intent to rob the Clerk. On May 10, 2012, KESECKER’s probation was revoked for testing positive for the use of heroin and he was sentenced to 6 months imprisonment and 3 years of supervised release. KESECKER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JORDAN TYLER KESECKER, age 26, of Hedgesville, was sentenced to 16 months imprisonment for possession of heroin. KESECKER was originally sentenced on October 18, 2011, to 2 years probation for assaulting, resisting and impeding a United States Postal Clerk with the intent to rob the Clerk. On May 10, 2012, KESECKER’s probation was revoked for testing positive for the use of heroin and he was sentenced to 6 months imprisonment and 3 years of supervised release. KESECKER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
LOUIS GONZALEZ, age 31, of Martinsburg, was sentenced to 12 months imprisonment to be followed by 24 months of supervised release for a new felony conviction for armed robbery. GONZALEZ was originally sentenced on February 17, 2005, to 31 months imprisonment and 3 years of supervised release for making a false statement in the acquisition of a firearm. GONZALEZ was remanded to the custody of the United States Marshal pending designation to a Federal institution.
DAVID DWAYNE GESFORD, age 28, of Martinsburg, was sentenced to 6 months imprisonment to be followed by 18 months of supervised release for use of controlled substances, failure to attend counsel, failure to file report with probation office and a stae conviction for delivery of a counterfeit controlled substance. GESFORD was originally sentenced on August 5, 2008, to 21 months imprisonment and 24 months of supervised release for being a drug user in possession of a firearm. GESFORD was remanded to the custody of the United States Marshal pending designation to a Federal institution.
RICHARD ANDREW ZOMBRO, age 45, of Bunker Hill, West Virginia, was sentenced to 5 months imprisonment to be followed by 19 months of supervised release for leaving judicial district without permission of probation officer, possession of drug paraphernalia, use of controlled substances, associating with drug user, and failure to follow instructions of his probation officer. ZOMBRO was originally sentenced on July 6, 2011, to 10 months imprisonment and 2 years of supervised release for disposal of a stolen firearm. ZOMBRO was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Seven Face Federal Methamphetamine ChargesRead the Press Release
A federal grand jury in Benton, Illinois, has charged seven individuals with methamphetamine related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Those charged with various methamphetamine offenses are:Daniel E. Pickens, 30, of Wheeler, Illinois; Rachel S. Priest, 37, of Wheeler, Illinois; Justin Pocrnich, 28, of Wheeler, Illinois; Deborah S. Rogers, 47, of Wheeler, Illinois; Kimberly A. Barker (Depositer), 32 of Watson, Illinois; Joshua R. Rodgers, 22, of Hidalgo, Illinois, and Savannah L. Ellis, 20, of Newton, Illinois.
The 26 count indictment charges all of the defendants with conspiracy to manufacture methamphetamine. All of the defendants are also charged with possession of pseudoephedrine with intent that it be used to manufacture methamphetamine. Defendant Pickens is also charged with maintaining a drug house in Wheeler, Illinois, and with several thefts of anhydrous ammonia.
If convicted, those charged with conspiracy to manufacture methamphetamine face 10 years to life in prison and a $10 million fine. Those charged with the other methamphetamine related offenses also face up to 20 years imprisonment and a $250,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Drug Enforcement Administration, the Illinois State Police, Southeastern Illinois Drug Task Force, United States Marshals Service, the Effingham County Sheriff’s Office; the Effingham County State’s Attorney’s Office, the Jasper County Sheriff’s Office and the Jasper County State’s Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Tom Leggans.
Sekiu Resident Sentenced to 12 Years in Prison for Drug and Gun CrimesRead the Press Release
A resident of Sekiu, Washington, who had been banned from Makah Tribal lands, was sentenced last week to 12 years in prison for Possession of Oxycodone with Intent to Distribute, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, announced U.S. Attorney Jenny A. Durkan. JAMES G. RODE, 47, was arrested March 2, 2012 following a court authorized search of his residence. Law enforcement found forty 15mg oxycodone pills hidden in a heating vent in the bathroom. Nearby, they found three firearms. RODE pleaded guilty in November 2012, admitting that the firearms were used to further his drug trafficking activity. On Friday May 10, 2013, U.S. District Judge Ronald B. Leighton ordered RODE to serve five years of supervised release following his prison term.
According to records in the case, members of the Olympic Peninsula Narcotics Enforcement Team were investigating RODE’s drug dealing. In February 2012 someone working with law enforcement bought oxycodone from RODE on multiple occasions. RODE had previously been banned from Makah Tribal lands because of criminal activity including burglary and sexual assault. RODE is a registered sex offender.
In asking for the 12 year sentence prosecutors noted the damage RODE did to the community. RODE “caused substantial harm to those living on the Makah Indian reservation where he distributed large quantities of Oxycodone pills. He also has a rather violent and prolific criminal history, which includes home invasion burglaries, as well as a prior conviction for unlawful possession of a firearm,” prosecutors wrote in their sentencing memo.
The case was investigated by Neah Bay Tribal Police, Olympic Peninsula Narcotics Enforcement Team, and agents from the FBI and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Assistant United States Attorney J. Tate London.
Roswell Man Pleads Guilty to Carrying a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
ALBUQUERQUE – Richard D. Crisman, 28, of Rio Rancho, N.M., was sentenced today to 97 months in federal prison followed by 25 years of supervised release for his conviction for receipt of child pornography. Crisman also was ordered to pay a $15,000.00 fine. He will be required to register as a sex offender after he completes his prison sentence. Crisman’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) El Paso.
Crisman was arrested in Sept. 2011 as part of Operation Predator, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico Internet Crimes Against Children (ICAC) Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. Twenty-two search warrants were executed and eight defendants were arrested in Sept. 2010 as a result of Operation Predator. All eight defendants have been convicted of child pornography offenses and are serving prison sentences.
Crisman was charged with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct, and three counts of possession of a matter containing visual depictions of minors engaged in sexually explicit conduct. In Feb. 2012, Crisman pleaded guilty to Count 2 of the indictment, a receipt of child pornography charge.
According to court records, Crisman was arrested as a result of an undercover investigation that revealed that Crisman received and possessed child pornography images through a peer-to-peer file sharing program in Nov. 2009, Feb. 2010, April 2010, June 2010 and July 2010. As a result of the investigation, in Sept 2010, law enforcement officers executed a search warrant at Crisman’s residence and seized computers and computer-related media that contained evidence of child pornography. While the search warrant was executed, Crisman voluntarily participated in a recorded interview during which he admitted using his computers to view child pornography.
Crisman has acknowledged that a forensic examination of his computers and computer-related media uncovered more than 14,000 images and 40 videos of child pornography. He also has acknowledged that the National Center for Missing and Exploited Children determined that the child pornography images and videos found on his computers and computer-related media included 1,884 child pornography images of more than 100 children who have been identified as child pornography victims and have been rescued, and nine child pornography videos of five children who have been identified as child pornography victims and have been rescued.
As required by Crisman’s plea agreement, Counts 1, 3 and 4 through 6 of the indictment were dismissed after Crisman was sentenced.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by HSI New Mexico, the New Mexico State Police, the New Mexico Regional Computer Forensic Lab and other agencies that participate in the New Mexico ICAC Task Force. The law enforcement agencies that participated in Operation Predator include: Albuquerque Police Department, Farmington Police Department, FBI, HSI, Las Cruces Police Department, New Mexico Attorney General’s Office, New Mexico State Police, Rio Rancho Police Department, Santa Fe Police Department, the United States Marshal’s Office in Las Cruces, the First Judicial District Attorney’s Office, the Fifth Judicial District Attorney’s Office, and the Eighth Judicial District Attorney’s Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Roswell Man Pleads Guilty to Carrying a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
ALBUQUERQUE – Tony Andy Gonzales, 61, of Roswell, N.M., pleaded guilty this afternoon to carrying a firearm in relation to a drug trafficking crime under a plea agreement with the U.S. Attorney’s Office. Gonzales’ guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Gonzales was arrested on Nov. 15, 2012, on a criminal complaint charging him with being a felon in possession of a firearm and subsequently was indicted and charged with (1) being a felon in possession of a firearm, (2) possession of heroin with intent to distribute, and (3) carrying a firearm in relation to a crime of violence. According to court records, Gonzales possessed a firearm and heroin on Sept. 27, 2012, in Chaves County, N.M. At the time, Gonzales was prohibited from possessing firearms and ammunition because he previously had been convicted of burglary and drug trafficking felony charges in the 5th Judicial District Court for the State of New Mexico in Chaves County.
This afternoon, Gonzales entered a guilty plea to Count 3 of the indictment and admitted possessing a firearm to further his drug trafficking activity. Gonzales acknowledged that on Sept. 27, 2012, officers executed a search warrant at his residence. Gonzales admitted that, at the time the officers were executing the search warrant, he was in possession of 24 individually wrapped packets of heroin which he intended to distribute to others. Gonzales also admitted that he was in possession of a loaded firearm that was easily accessible and located near a lockbox containing his drug proceeds.
Gonzales has been in federal custody since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Gonzales faces a prison sentence of at not less than five years and not more than 40 years. Under the terms of the plea agreement, Counts 1 and 2 of the indictment will be dismissed after Gonzales is sentenced.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, The Chaves County Metro Narcotics Task Force and the Roswell Police Department with assistance from the 5th Judicial District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Rio Rancho Man Sentenced to Ninty-Seven Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Richard D. Crisman, 28, of Rio Rancho, N.M., was sentenced today to 97 months in federal prison followed by 25 years of supervised release for his conviction for receipt of child pornography. Crisman also was ordered to pay a $15,000.00 fine. He will be required to register as a sex offender after he completes his prison sentence. Crisman’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) El Paso.
Crisman was arrested in Sept. 2011 as part of Operation Predator, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico Internet Crimes Against Children (ICAC) Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. Twenty-two search warrants were executed and eight defendants were arrested in Sept. 2010 as a result of Operation Predator. All eight defendants have been convicted of child pornography offenses and are serving prison sentences.
Crisman was charged with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct, and three counts of possession of a matter containing visual depictions of minors engaged in sexually explicit conduct. In Feb. 2012, Crisman pleaded guilty to Count 2 of the indictment, a receipt of child pornography charge.
According to court records, Crisman was arrested as a result of an undercover investigation that revealed that Crisman received and possessed child pornography images through a peer-to-peer file sharing program in Nov. 2009, Feb. 2010, April 2010, June 2010 and July 2010. As a result of the investigation, in Sept 2010, law enforcement officers executed a search warrant at Crisman’s residence and seized computers and computer-related media that contained evidence of child pornography. While the search warrant was executed, Crisman voluntarily participated in a recorded interview during which he admitted using his computers to view child pornography.
Crisman has acknowledged that a forensic examination of his computers and computer-related media uncovered more than 14,000 images and 40 videos of child pornography. He also has acknowledged that the National Center for Missing and Exploited Children determined that the child pornography images and videos found on his computers and computer-related media included 1,884 child pornography images of more than 100 children who have been identified as child pornography victims and have been rescued, and nine child pornography videos of five children who have been identified as child pornography victims and have been rescued.
As required by Crisman’s plea agreement, Counts 1, 3 and 4 through 6 of the indictment were dismissed after Crisman was sentenced.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by HSI New Mexico, the New Mexico State Police, the New Mexico Regional Computer Forensic Lab and other agencies that participate in the New Mexico ICAC Task Force. The law enforcement agencies that participated in Operation Predator include: Albuquerque Police Department, Farmington Police Department, FBI, HSI, Las Cruces Police Department, New Mexico Attorney General’s Office, New Mexico State Police, Rio Rancho Police Department, Santa Fe Police Department, the United States Marshal’s Office in Las Cruces, the First Judicial District Attorney’s Office, the Fifth Judicial District Attorney’s Office, and the Eighth Judicial District Attorney’s Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Registered Sex Offender Sentenced to Life in Prison for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man who is a registered sex offender was sentenced in federal court today for creating videos of his sexual assault of a child.
William G. Weiss, 40, of Blue Springs, was sentenced by U.S. District Judge Greg Kays to life in federal prison without parole.
Weiss was required to register as a sex offender due to his prior felony convictions for attempted statutory sodomy of two other child victims. This case marked the first prosecution in the Western District of Missouri under a federal statute that classifies violent crimes against children. The statute mandates a life sentence if a defendant with a prior sex conviction (in which the victim was a child) is convicted of a federal sex offense in which the victim is a child.
On Nov. 21, 2012 Weiss pleaded guilty to producing child pornography. Weiss admitted that he used an 8-to-9-year-old minor, identified as Jane Doe, to produce child pornography.
Law enforcement officers discovered a video of child pornography on Weiss’s cell phone during an investigation into his sexual assault of another minor. (Weiss has been charged in Jackson County Circuit Court with statutory sodomy and attempted statutory rape related to this conduct.) Investigators found a self-produced video of Weiss having sexual intercourse with Jane Doe, whom he identified as the daughter of a friend. Investigators found two more child pornography movies that depicted the same child victim, Jane Doe, on Weiss’s computer. Weiss admitted that he had sexually assaulted her eight to 10 times.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Lee’s Summit, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Redby Man Sentenced for Harboring A FugitiveRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 23-year-old Redby man was sentenced for harboring a fugitive last spring. On May 13, 2013, United States District Court Judge John R. Tunheim sentenced Andrew Oakgrove to 30 months in prison on one count of harboring and concealing a fugitive. Oakgrove was indicted on December 10, 2012, and pleaded guilty on February 6, 2013.
In his plea agreement, Oakgrove admitted that on April 30, 2012, he concealed Jason King from federal authorities. King was wanted on a federal arrest warrant for his indictment in connection to the December 30, 2011, armed robbery of Newby’s Market in Bemidji. Oakgrove also admitted leading police on a high-speed pursuit over several miles. Both men were arrested following the pursuit.
This case was the result of an investigation by the Red Lake Tribal Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Porcupine Man Sentenced for Stabbing A ManRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 3, 2013 by Chief Judge Jeffrey L. Viken, United States District Court.
Lucas J. Tail, age 19, was sentenced to time served and 3 years of supervised release and ordered to pay $100 to the Federal Crime Victims Fund.
In June 2012, at Pine Ridge, Tail stabbed a man with a knife, causing him extreme pain and injuries to his sternum, left shoulder, and back. Tail pleaded guilty on December 5, 2012.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Sarah B. Collins prosecuted the case.
Porcupine Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota man convicted of Assault by Striking, Beating, and Wounding was sentenced on May 3, 2013 by U.S. Magistrate Judge Veronica L. Duffy.
Quentine Lone Elk, age 46, was sentenced to 2 years of probation and ordered to pay $10 to the Federal Crime Victims Fund.
In October 2011, near Porcupine, Lone Elk cut another man with a knife. He pled guilty on March 8, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Pine Ridge Woman Pleads Guilty to Assaulting an OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Pamela Belt, age 49, of Pine Ridge, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 8, 2013 and pled guilty to Assault on a Federal Officer.
The maximum penalty upon conviction is 8 years' imprisonment and/or a $250,000 fine.
On June 10, 2012, near Oglala, Belt physically resisted an Oglala Sioux Tribal officer as he was attempting to arrest her.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be set. The defendant was released on bond pending sentencing.
Physical Therapy Owner and Employees Charged with FraudRead the Press Release
BOSTON – A Brockton woman and three of her employees were charged with defrauding insurance companies in connection with physical therapy services.
Walkyria Massie, a/k/a Vicky Lopes, 37, of Brockton; Edward Rossi, 53, of Rochester, Deidre Chouinard, 36, of North Attleboro; and Manuela Andrade, 24, of Brockton, were charged in an indictment unsealed yesterday with conspiracy to commit mail fraud and three separate instances of mail fraud.
The indictment alleges that Massie was the owner and operator of Westgate Physical Therapy in Brockton. Patients would seek treatment at Westgate for minor injuries, generally sustained in car accidents. Massie employed Chouinard, a physical therapist, Rossi, a physical therapy assistant, and Andrade, an office manager. The indictment alleges that Massie, Rossi, Chouinard, and Andrade conspired together to falsify patient treatment charts to reflect therapy that was either never given, or was performed by unlicensed personnel, including Massie herself. Massie caused these fraudulent physical therapy claims to be submitted by mail to private insurance companies for payment. Various insurance companies paid more than $400,000 in bodily injury claims to Westgate and its patients during a two year period, based on these fraudulent submissions.On the charges of conspiracy to commit mail fraud and mail fraud, the defendants face a statutory maximum penalty of 20 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Anthony DiPaolo, Vice President/Chief of Investigations of the Insurance Fraud Bureau of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Shelbey Wright of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Man Pleads Guilty to Forging Federal Judge’s Signature to Escape from PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin William Small, age 50, pleaded guilty today in Harrisburg before United States District Court Judge Gene E.K. Pratter to mail fraud, escape, forging judicial signatures, use of a counterfeit seal and possession of a counterfeit seal. A sentencing date has not been scheduled.
According to United States Attorney Peter J. Smith, in 2007, Small was convicted of four counts of filing false tax claims following a week-long trial before District Court Judge Christopher C. Conner. Evidence presented during the trial showed that Small was a long-term state prisoner who for at least four years had filed for an income tax refund claiming that he was due a substantial tax refund. Trial evidence from 2007 also established that Small created documents to substantiate his fictitious employment and opened fraudulent bank accounts to receive the tax refunds.
Judge Conner sentenced Small to serve 135 months in federal prison and directed that he begin serving this sentence after he finished serving his state sentence at Huntingdon State Prison. Small’s conviction and sentence were affirmed by appellate courts following two rounds of appeals.Small’s state sentence expired on January 5, 2012 and he was scheduled to be turned over to federal prison authorities on that day. However, state prison officials had received a document that purported to be signed and sealed by Judge Conner and the Clerk of Courts for the Middle District of Pennsylvania that stated that Small’s federal conviction had been vacated. As a result, Small was released on that day rather than being turned over to federal prison authorities to begin serving his federal sentence.
The escape was discovered when a federal agent called the state prison on another matter on March 8, inquired about Small, and learned that Small had been released to the street on January 5, 2012.
Small was located by the U.S. Marshals Service and arrested in a residence in Philadelphia on March 5, 2012. Many documents that appeared to be forged or fraudulent were seized from the residence at the time of his arrest, including partially-prepared court documents that purportedly freed other state prisoners.
Small was indicted on the most recent charges in March 2012. A superseding indictment was returned in December 2012. Judge Pratter, a federal Judge in the Eastern District of Pennsylvania, was assigned to the case because the defendant’s conduct involved forgery of the signature of a federal Judge in the Middle District of Pennsylvania.
This case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigations and is assigned to Assistant U.S. Attorney Christy H. Fawcett.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Petties Co-Conspirator Clinton Lewis Sentenced to Life in Federal PrisonRead the Press Release
Memphis, TN – Clinton Lewis, a/k/a “Goldie”, 36, of Memphis, TN was sentenced today by U.S. District Judge Samuel H. Mays, Jr. to life in federal prison for his role in the Craig Petties Drug Trafficking Organization (DTO), announced U.S. Attorney Edward L. Stanton III and Resident Agent-in-Charge of the Drug Enforcement Administration’s Memphis office Brian Chambers.
# # # #
On March 23, 2012, Lewis was convicted of one count of racketeering conspiracy; two counts of violent crime in aid of racketeering activity for his role in the kidnapping of Marcus Turner and the murder of Mario McNeal; one count of conspiracy to commit murder for hire for his role in the murder of Mario McNeal; one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine; and one count of conspiracy to commit money laundering.
Lewis was sentenced to life in prison on all charges, except money laundering, for which he was sentenced to 20 years. All sentences will run concurrently. There is no parole in the federal system.
As outlined in the indictment, Lewis was a member of a criminal racketeering enterprise, the Petties DTO, whose members conspired with cocaine traffickers in Mexico, Texas, Mississippi, North Carolina, Georgia, Tennessee, and elsewhere. As part of the conspiracy, cocaine was prepared, packaged and/or stored, prior to distribution to buyers in “stash houses.” The defendant and the co-conspirators used these “stash houses” to avoid detection by law enforcement authorities. It was further part of the conspiracy that the defendants and their co-conspirators sorted, counted, packaged, and stored large amounts of cash derived from the sale of controlled substances in various co-conspirators’ premises in the Western District of Tennessee. The co-conspirators delivered large amounts of currency derived from the sale of cocaine from the Western District of Tennessee and elsewhere to Texas and Mexico. In order to facilitate continued drug trafficking and in order to prevent others from cooperating with law enforcement authorities, it was further part of the conspiracy that the defendant and the co-conspirators did kill other people. Over thirty people have been charged and convicted as part of this investigation.
The case was investigated by the Drug Enforcement Administration, the United States Marshals Service, the Memphis Police Department, the Shelby County Sheriff’s Department and the Olive Branch Police Department. The case is being prosecuted by Assistant United States Attorney David Pritchard on behalf of the government.Passaic County Man Admits Role in Long-Running, International Counterfeit Goods Trafficking SchemeRead the Press Release
Forfeits $200,000 in Ill-Gotten Gains to the United States
NEWARK, NJ – A Passaic County, N.J., man today admitted participating in a multi-year, international conspiracy to traffic in counterfeit goods, U.S. Attorney Paul J. Fishman announced.
Aref Abuhadba, 49, of Totowa, N.J., pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to an Information charging him with one count of conspiring to traffic in counterfeit goods. As part of his guilty plea, Abuhadba presented the government with a check for $200,000 today, representing his ill-gotten gains from his involvement in the conspiracy.
According to documents filed in this case and statements made in court:From 2003 through 2010, Abuhadba and others conspired to import counterfeit Nike sneakers and counterfeit Walt Disney-brand comforters and blankets from the People’s Republic of China (PRC) for resale in the United States. Abuhadba worked in concert with a conspirator in the PRC, who acted as a middleman between the manufacturers of counterfeit goods in the PRC and Abuhadba in the United States. The conspirator purchased counterfeit goods from manufacturers in the PRC and arranged for them to be shipped various ports of entry within the United States. Once the containers arrived, other conspirators arranged for them to be delivered to warehouses and other locations throughout the United States controlled by Abuhadba, who would then distribute the counterfeit goods to customers throughout the United States.
Abuhadba was also responsible for collecting money from customers and wiring the proceeds of the scheme to the conspirators. For his participation, Abuhadba received a fee of up to $42,000 for each container that was successfully imported into the United States. If a container was seized by law enforcement, however, Abuhadba was sometimes responsible for a portion of the costs of the goods in the seized container.
According to e-mails reviewed by law enforcement during the investigation, in late 2008, a number of containers with contents valued in the millions of dollars were seized by U.S. Customs and Border Protection (CBP). On Sept. 17, 2008, CBP agents inspected a container at Los Angeles/Long Beach Seaport in Long Beach, Calif., destined for Abuhadba in New Jersey. There were more than 10,000 pairs of counterfeit Nike Air Force One sneakers, bearing various Nike trademarks in the container. The approximate cost of the goods seized was approximately $200,000, and their approximate retail value was $1.5 million. Following the 2008 seizures, Abuhadba exchanged numerous e-mails with the PRC conspirator discussing the seizures and encouraged the PRC conspirator to send false letters to the CBP concerning the seizures, stating that the seized containers were delivered by mistake and were not intended for Abuhadba.
The count to which the defendant pleaded guilty is punishable by a maximum penalty of five years in prison and a fine of up to $250,000, or twice the gross amount of any pecuniary gain derived from the offense, or pecuniary loss sustained by any victims of the offense. Sentencing is scheduled for Sept. 9, 2013.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Gurbir S. Grewal of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-193Defense counsel: Edward Bilinkas and Sara Sencer McCardle Esqs., Randolph, N.J.
Abuhadba, Aref Information
Owner of New Jersey Aircraft Parts Brokerage Company Arrested, Charged with Laundering Scrapped Jet Engine PartsRead the Press Release
NEWARK, N.J. – The owner of an aircraft parts broker in Ridgefield, N.J., will appear in Newark federal court today following his arrest last night for an alleged conspiracy to launder scrapped jet engine parts, U.S. Attorney Paul J. Fishman announced.
Gideon Vaisman, 73, of Edgewater, N.J., the sole owner of Tara Technology Corp. in Ridgefield, is charged in a criminal complaint with one count of conspiracy to commit wire fraud. He will appear on the charges this afternoon before U.S. Magistrate Judge Madeline Cox Arleo.
According to the complaint unsealed upon Vaisman’s arrest:
Vaisman orchestrated a scheme, from April 2005 to May 2013, to defraud Federal Aviation Administration (FAA) repair stations, aircraft parts brokers, aircraft parts end-users and others by using phony documents to resell jet engine parts obtained from scrap metal dealers.
Among other things, Vaisman instructed Tara Technology’s general manager, Carmine Coviello, 61, to use his Suffern, N.Y.-based aircraft parts broker and seller company, Shelby Enterprises, to purchase vital jet engine parts called “blades” and “vanes” from scrap metal dealers. Once Coviello purchased the blades and vanes, he had them cleaned, sanded and inspected at a metal shop to conceal that they had been scrapped and on occasion rejected for repair by an FAA repair station. He did this at Vaisman’s direction and in violation of FAA regulations, which mandate that only FAA-certified repair stations or certified airframe and power plant mechanics may perform such work on aircraft parts.
Also at Vaisman’s direction, Coviello conducted sham sales of the illegally altered blades and vanes to Tara Aviation, Ltd., an aircraft parts broker and seller – incorporated in Tortola, British Virgin Islands, and located in Guernsey, United Kingdom – which was controlled and financed by Vaisman. The sole purpose of these sales, which occurred only on paper, was to generate fraudulent trace paperwork for the parts. The parts never left New Jersey. Trace paperwork documents the history of an aircraft part and includes information such as the part’s manufacturer, the aircraft on which the part was used and how it was used. The paperwork is also employed in determining whether an aircraft or aircraft part has been subject to severe stress or heat as would occur during a major engine failure, accident or fire.
Vaisman, Coviello and a sales representative stored the blades and vanes in Tara Technology’s warehouse inventory, ultimately selling them to aircraft brokers, airlines and others on behalf of Tara Aviation using the fraudulent trace paperwork.
The count with which Vaisman is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Coviello previously pleaded guilty, before U.S. District Judge Mary L. Cooper, to an information charging him with conspiracy to commit wire fraud in relation to the scheme. His sentencing is scheduled for Sept.12, 2013.
U.S. Attorney Fishman credited special agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker; IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and criminal investigators with the U.S. Attorney’s Office with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.The charge and allegations against Gideon are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Edward J. Dauber Esq., NewarkVaisman, Gideon Complaint
Orthofix Territory Manager Convicted for Committing Health Care Fraud and Paying KickbacksRead the Press Release
BOSTON – A former Orthofix territory manager was convicted today for health care fraud and paying kickbacks.
Hunter A. Rigsby, 33, of Knoxville, Tenn., pleaded guilty before U.S. District Judge F. Dennis Saylor IV to health care fraud and paying kickbacks.
Rigsby was a territory manager for Orthofix, Inc., a company that sold bone growth stimulator medical devices. Bone growth stimulators are used by patients who have broken bones or spinal fusions that are not healing properly. From 2005 through 2011, Rigsby sold Orthofix bone growth stimulators in Tennessee. Medicare only pays for “long bone” stimulators when at least 90 days have elapsed without clinically significant healing, and it only covers certain types of injuries. Rigsby was well-aware of these guidelines, having received training on these guidelines at Orthofix. On numerous occasions, doctors in Rigsby’s territory ordered bone growth stimulators that did not satisfy Medicare’s guidelines. For instance, some doctors prescribed the device before 90 days had not yet elapsed without any healing, and other doctors prescribed the device for patients who had injuries that were not covered under Medicare’s guidelines. When this occurred, Rigsby often forged the patient’s medical records to make it appear as though the claim was payable under Medicare’s guidelines, when in fact Medicare should not have paid the claim. For instance, Rigsby falsified doctors’ chart notes to make it appear as though Medicare’s 90-day rule was satisfied. Rigsby also deleted portions of physicians’ chart note that described patients’ injuries which were not covered by Medicare and changed the note to make it appear as though the patients had injuries that were covered. On some occasions, Rigsby submitted orders where the physician had not ordered a bone growth stimulator at all. Rigsby also forged physicians’ signatures on prescriptions and Medicare Certificates of Medical Necessity.
In July 2009, Orthofix fired Rigsby after discovering his fraud scheme. Immediately thereafter, Rigsby and Orthofix sales personnel devised a scheme to allow Rigsby to continue to submit bone growth stimulator orders to Orthofix through a new front company that Rigsby created. Rigsby took numerous steps to conceal his affiliation with the front company so that Orthofix compliance personnel would not detect that he was still doing business with the company. Rigsby continued to submit orders for stimulators, sending the orders in through separate individuals. Even though Rigsby had been fired for falsifying medical records, he continued to manipulate patient medical records and forge physicians’ signatures until Orthofix finally severed its relationship with him in 2011. Through his scheme, Rigsby caused Medicare and other federal insurance programs to pay more than $400,000 for bone growth stimulators that should not have been paid.
Rigsby also paid kickbacks to health care professionals to induce them to order Orthofix stimulators. For instance, Rigsby paid the person who was responsible for ordering stimulators at one of the largest medical practices in Tennessee. Rigsby approached this person and asked if he could pay this person in return for steering stimulator orders to Orthofix. The person agreed, and Rigsby left an envelope with $200 in cash at the person’s house. In another instance, Rigsby entered into an arrangement to pay a nurse in Morristown, Tenn., each time that the surgeon who employed her ordered an Orthofix stimulator. Rigsby left an envelope of cash, between $200-$300, in the back of the nurse’s truck after the surgeon began to order stimulators.
In addition to the Rigsby sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- In December 2012, Orthofix was convicted of obstruction of a federal audit and ordered to pay $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- In January 2013, Tom Guerrieri, the former vice president of sales for Orthofix, was sentenced to eight months in prison and ordered to pay $50,000 in fines and forfeiture for paying kickbacks;
- In July 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison and six months home confinement, and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
- In January 2013, Derrick Field, a former Orthofix territory manager, was sentenced to five months of home confinement as part of a two year probation sentence, forfeiture of $40,000 and a $4,000 fine for committing health care fraud;
- In January 2013, Mitchell Salzman, a former regional manager for Orthofix, was sentenced to one year of probation, with the first three months to be served in home confinement, and ordered to pay a $2,000 fine for committing perjury;
- In January 2013, Michael McKay was sentenced to one year of probation, with the first three months to be served in home confinement, forfeiture of $10,000 and a fine of $3,000 for committing health care fraud; and
- In February 2013, Brian Racey, a former Orthofix territory manager, was sentenced to one year of probation and ordered to pay a fine for committing health care fraud;
Judge Saylor scheduled sentencing for August 9, 2013. The statutory maximum penalty on the charge of health care fraud is 10 years in prison, followed by three years of supervised release, a fine of $250,000 or twice the loss or gain resulting from the crime, whichever is greater, forfeiture, restitution, and a mandatory special assessment. The statutory maximum penalty on the charge of paying kickbacks is five years in prison, followed by three years of supervised release, a fine of $250,000 or twice the loss or gain resulting from the crime, whichever is greater, forfeiture, restitution, and a mandatory special assessment.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Office of Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David S. Schumacher of Ortiz’s Health Care Fraud Unit.
Ohio Man Charged with Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Warren, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Matthew Hosey, 61, of Warren, Ohio.
According to the indictment, on or about April 24, 2013, Hosey possessed with intent to distribute a quantity of crack cocaine and a quantity of heroin.
The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Southwest Regional Police Department, Pennsylvania State Police, Drug Enforcement Administration, and the Pennsylvania Attorney General's Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Niagara Falls Man Sentenced on Gun ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Walter McTyere, 30, of Niagara Falls, N.Y., who was convicted of possessing a firearm with an obliterated serial number, was sentenced by U.S. District Judge Richard J. Arcara to one year in prison.
According to Assistant U.S. Attorney John M. Alsup, who is handling the case, McTyere was found in possession of a pistol with an obliterated serial number during an investigation into illicit firearm transactions in Niagara Falls in January and February 2012.
The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.New Haven Man Sentenced to 14 Years in Federal Prison for Distributing Heroin and Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RALSTON WILLIAMS, also known as “Chris,” 43, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 168 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine. WILLIAMS also was ordered to pay a $100,000 fine.
On May 29, 2012, a jury found WILLIAMS guilty of one count of conspiracy to possess with intent to distribute heroin, one count of possession with intent to distribute heroin, and one count of possession with intent to distribute cocaine base (“crack cocaine”).
According to the evidence at trial, in August 2011, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force initiated an investigation into a series of suspected heroin overdose cases in the greater New Haven area, including one that resulted in the death of a woman in Milford on August 16, 2011. The investigation revealed that WILLIAMS, his co-defendant, Jason Brodsky, and others rented hotel rooms in the New Haven area and sold prepackaged heroin to a variety of customers. The trial evidence included surveillance videos, hotel records, telephone records, recorded calls, seized narcotics, as well as testimony of law enforcement officers and cooperating witnesses.
WILLIAMS was arrested on September 7, 2011, at which time he was found in possession of approximately 140 bags of heroin and 40 bags of crack cocaine packaged for sale.
Judge Bryant found that WILLIAMS and Brodsky sold the heroin that caused the overdose death of the Milford woman.
Brodsky has pleaded guilty and awaits sentencing.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department, with the assistance of the Connecticut State Police and the Bridgeport and Stamford Police Departments.
This case is being prosecuted by Assistant United States Attorneys Sarah Karwan and Peter Markle.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Haven Man Admits Role in Killingworth Bank RobberyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that MARCUS DWYER, 40, of New Haven, pleaded guilty yesterday before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of bank robbery for his role in the August 2012 robbery of TD Bank in Killingworth.
According to court documents and statements made in court, in the afternoon of August 6, 2012, Jennifer Jacques drove DWYER and Dario Pabey to the TD Bank on Route 81 in Killingworth. DWYER and Pabey then entered the bank wearing masks and demanded that everyone lie on the floor. DWYER pointed a gun at bank employees and customers and then jumped over the teller door and ordered the employees to open the vault. He accompanied the employees to the vault while Pabey controlled the lobby area. Pabey used zip ties to tie the hands of one bank employee and demanded that the customers give him their wallets, mobile phones and car keys. As Pabey was starting to restrain a second person with zip ties, DWYER ran past him with a bag of money that he had taken from the vault. Pabey followed and grabbed a patron who had surrendered his car keys to him and forced him out of the bank. DWYER and Pabey fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where Jacques was waiting. Jacques then drove DWYER and Pabey away from the bank while they changed out of the clothes they had worn during the robbery.
The investigation has revealed that $43,573 was stolen from the bank and its patrons during the robbery.
DWYER is scheduled to be sentenced by United States District Judge Janet C. Hall on August 20, 2013, in New Haven at which time DWYER faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
DWYER has been detained since his arrest on September 19, 2012.
Pabey, of Waterbury, pleaded guilty on February 25, 2013. He is scheduled to be sentenced on May 24, 2013. Jacques also has pleaded guilty and awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorneys Ray Miller and Sarala Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nesspor Pleads Guilty to Oxycontin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 54-year-old West Lawn, Pennsylvania resident pleaded guilty today in Scranton before Senior U.S. District Court Judge Edwin M. Kosik to participating in an Oxycontin trafficking conspiracy that operated in Schuylkill and Berks County in 2011.
According to United States Attorney Peter J. Smith, Stephen Nesspor admitted to conspiring with at least two others to unlawfully distribute 80mg Oxycontin pills.
Nesspor was indicted by a federal grand jury in September 2011, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.
Judge Kosik ordered a pre-sentence investigation report to be completed. Nesspor faces up to 20 years in prison and a $1 million fine. No date was set for sentencing.
Two of Nesspor’s co-defendants previously entered guilty pleas in the case. Richard Law was sentenced to 15 months in prison. Michael Beaver pleaded guilty and is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Nebraska Man Indicted for Aggravated Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a North Platte, Nebraska man has been indicted by a federal grand jury for allegedly engaging in a sexual act with a three year old on July 25, 2011 at Allen, South Dakota.
Frank Red Bear, age 44, was indicted by a federal grand jury on April 16, 2013 for Aggravated Sexual Abuse of a Minor. Red Bear appeared before U.S. Magistrate Judge Veronica L. Duffy on May 8, 2013 and pled not guilty to the indictment.
The minimum penalty upon conviction is 30 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Red Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Red Bear was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Michigan Physician Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
A Detroit-area physician pleaded guilty today to making fraudulent referrals for home health care as part of a $1.6 million home health care fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Dr. Sonjai Poonpanij, 82, of Rochester, Mich., pleaded guilty before Senior U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Dr. Poonpanij admitted that beginning in approximately July 2010, he conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care that was not medically necessary and causing false and fraudulent claims to be submitted to Medicare.
Dr. Poonpanij admitted that he saw patients at a psychotherapy center in Flint, Mich., known as New Century Adult Day Program Services LLC, and referred Medicare beneficiaries at New Century to home health care companies – including a home health care company known as Angle’s Touch Home Health Care LLC – even though he knew that those beneficiaries did not qualify for home health care. According to court documents, Dr. Poonpanij wrote prescriptions for narcotics requested by the beneficiaries in exchange for their enrollment with Angle’s Touch for home health care that they did not need or receive. In addition to referring patients that he saw at New Century, Dr. Poonpanij also referred beneficiaries whom he had never seen or treated to Angle’s Touch and other home health agencies. Dr. Poonpanij signed plans of care for these beneficiaries that were used to bill Medicare for services that were either never actually performed or were not performed in the beneficiaries’ homes as required.Court documents allege that between September 2008 and September 2012, Dr. Poonpanij caused Angle’s Touch and two other home health agencies to submit claims to Medicare for services that were not medically necessary and/or not provided, which caused Medicare to pay these companies approximately $1,318,954.
At sentencing, scheduled for Aug. 14, 2013, Dr. Poonpanij faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney Niall M. O’Donnell of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Michigan Man Sentenced for Tax FraudRead the Press Release
Steven Kern, of Marine City, Mich., was sentenced to serve one year and one day in prison by U.S. District Court Judge Arthur J. Tarnow in the Eastern District of Michigan, the Justice Department and Internal Revenue Service (IRS) announced. On January 28, 2013, Kern pleaded guilty to an indictment charging him with eight counts of filing false corporate tax returns and eight counts of failing to file his individual income tax returns.
According to court documents, Kern operated the Kern Chiropractic Center in Marine City. From 2003 through 2010, Kern filed false corporate returns for Kern Chiropractic that did not include as gross receipts cash and check payments that Kern diverted from the business for his own personal use. During the same years, Kern failed to file individual tax returns, despite earning more $1.2 million in gross income during that time period. F iled court documents and court proceedings further established that Kern has not filed an individual federal income tax return since 2002 and told IRS – Criminal Investigation special agents he believed signing and filing a completed individual federal tax return was a violation of his constitutional rights.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally commended the efforts of special agents of IRS – Criminal Investigation in investigating the case and Tax Division Trial Attorneys Mark McDonald and Jeff Bender for prosecuting the case.
Mexican Citizen Found in Altoona Indicted on Immigration ViolationRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Juan Raymundo Martinez-Alba, 28, of Altoona, Pa., as the sole defendant.
According to the indictment, on April 10, 2013, Martinez-Alba, an alien who had been deported from the United States on Dec. 4, 2008, was found in Altoona, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Methamphetamine Dealer, Kerry Wayne Walker, Pleads Guilty in Federal CourtRead the Press Release
KERRY WAYNE WALKER, age 50, a resident of New Orleans, Louisiana, pleaded guilty in federal court today to being part of a conspiracy to traffic in methamphetamine and heroin, announced U. S. Attorney Dana J. Boente.
WALKER pleaded guilty before U. S. District Judge Jay C. Zainey to one count of violating the Federal Controlled Substances Act in which he and others conspired to distribute 500 grams or more of methamphetamine and 100 grams or more of heroin. The count carries a minimum of 10 years imprisonment up to a maximum of life imprisonment and a minimum of five years of supervised release.
According to court documents, the Drug Enforcement Administration along with state and local law enforcement had investigated the trafficking of methamphetamine in and around the French Quarter area. Agents learned that WALKER was a distributor in the area. Ultimately, agents arrested WALKER in the fall of 2013. WALKER’s co-defendants are currently set for jury trial on June 24, 2013.
This case was investigated by Special Agents of the Drug Enforcement Administration and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Kevin G. Boitmann.
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Melbourne Man Sentenced to 20 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Jose Manuel Rivera, Jr. (35, Melbourne) to the statutory maximum of 20 years in federal prison for receipt of child pornography. The court also ordered Rivera to serve a 25-year term of supervised release following his release from prison, and to forfeit the computer equipment he used to commit the offense. Rivera pleaded guilty on February 22, 2013.
According to court documents, Rivera downloaded and collected over a dozen movies depicting the sexual exploitation and abuse of prepubescent children, some as young as three years old. Rivera also admitted to molesting a toddler on two separate occasions when the child had previously lived in his family's home. “Homeland Security Investigations special agents identified Rivera as a child predator during Operation Sunflower, a nationwide operation focused on identifying sexual predators and rescuing victims,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “As a result of our agents’ investigative work, Rivera can no longer prey on innocent children. He will spend the next two decades behind bars.”
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.Homeland Security Investigations launched Operation Sunflower in November 2012 to commemorate the one-year anniversary in which the identification of a sunflower-shaped highway road sign led to the rescue of an 11-year-old girl in Kansas. The operation identified 123 victims of child exploitation. Of that number, 44 were directly rescued from their abusers and 79 were identified as either being exploited by others outside their home or are now adults who were victimized as children.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Medicare Fraud Strike Force Charges 89 Individuals for Approximately $223 Million in False BillingRead the Press Release
Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in eight cities has resulted in charges against 89 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings.
Attorney General Holder and Secretary Sebelius were joined in the announcement by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, FBI Assistant Director Ron Hosko, Inspector General Daniel R. Levinson of the HHS Office of Inspector General (HHS-OIG) and Deputy Administrator and Director of Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity Peter Budetti.
This coordinated takedown was the sixth national Medicare fraud takedown in Strike Force history. In total, almost 600 individuals have been charged in connection with schemes involving almost $2 billion in fraudulent billings in these national takedown operations alone. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, CMS, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. Approximately 400 law enforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud Control Units and other state and local law enforcement agencies participated in the takedown.
“Today’s announcement marks the latest step forward in our comprehensive efforts to combat fraud and abuse in our health-care systems,” said Attorney General Holder. “These significant actions build on the remarkable progress that the HEAT has enabled us to make – alongside key federal, state, and local partners – in identifying and shutting down fraud schemes. They are helping to deter would-be criminals from engaging in fraudulent activities in the first place. And they underscore our ongoing commitment to protecting the American people from all forms of health-care fraud, safeguarding taxpayer resources and ensuring the integrity of essential health-care programs.”
“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius. “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars. Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price. We will protect a sacred trust and an earned guarantee.”
The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, primarily home health care, but also mental health services, psychotherapy, physical and occupational therapy, durable medical equipment (DME) and ambulance services.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and often never provided. In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent billing to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit a total of approximately $223 million in fraudulent billing.
“We have made it part of our core mission at the Department of Justice to hold accountable those who steal from the Medicare program to line their own pockets,” said Acting Assistant Attorney General Raman. “There are Medicare fraudsters in prisons across the country – some who will be there for decades – who can attest to our determination, and our effectiveness.”
“We all feel the effects of health care fraud,” said FBI Assistant Director Hosko. “It leads to higher health care costs and makes it harder for seniors and those who are ill to get the care they need. The FBI and our law enforcement partners are committed to preventing and prosecuting health care fraud at all levels. But we need the public’s help. Take the time to be aware of fraud and call law enforcement if you see anything suspicious included in the billings to your insurance, Medicare, or Medicaid or have any unusual encounters with health care providers. We can work together to ensure your hard-earned dollars are used to care for the sick and not to line the pockets of criminals.”
“Taxpayers expect us to work harder and smarter, and that is exactly what happened across the nation today,” said HHS Inspector General Levinson. “In addition to the work of my agents and other federal, state, and local law enforcement officials, investigators from nine other IG offices joined us today. Working together we can break down silos, pool expertise, reduce costs, and the successful result speaks for itself.”
“Today’s takedown is the result of dedicated commitment to working with our law enforcement partners to root out fraud in the Medicare program,” said CMS Program Integrity Deputy Administrator Budetti. “This collaboration has been strengthened by the Affordable Care Act, which provided CMS with the tools it needs to stop the flow of money while working to rid our programs of fraud, waste and abuse.”
In Miami, a total of 25 defendants, including two nurses, a paramedic and a radiographer, were charged today and yesterday for their participation in various fraud schemes involving a total of $44 million in false billings for home health care, mental health services, occupational and physical therapy, DME and HIV infusion. In one case, three defendants were charged for participating in a $20 million home health fraud scheme involving a home health agency, Trust Care Health Services. Court documents allege that the defendants bribed Medicare beneficiaries for their Medicare information, which was used to bill for home health services that were not rendered or that were not medically necessary. According to court documents, the lead defendant spent much of the money from the scheme, and purchased multiple luxury vehicles, including two Lamborghinis, a Ferrari and a Bentley.
Eleven individuals were charged by the Baton Rouge Strike Force. Five individuals were charged today, including two doctors, in New Orleans by the Baton Rouge Strike force for participating in a different $51 million home health fraud scheme. According to court documents, the defendants recruited beneficiaries, offering cash and other incentives in exchange for their Medicare information, which was used to bill medically unnecessary home health services. The Baton Rouge Strike Force also announced a superseding indictment and an information charging six individuals, including another doctor, with over $30 million in fraud in connection with a community mental health center called Shifa Texas. These charges come on top of charges brought against the owners and operators of Shifa Baton Rouge, a related community mental health center which is at the center of an alleged $225 million scheme charged in an earlier indictment.
In Houston, two individuals, including a nurse and a social worker, were charged today with fraud schemes involving at total of $8.1 million in false billings for home health care. The defendants, who are brother and sister, allegedly used patient recruiters to obtain Medicare beneficiary information that they then used to bill for services that were not medically necessary and not provided.
Thirteen defendants were charged in Los Angeles for their roles in schemes to defraud Medicare of approximately $23 million. In one case, three individuals allegedly billed Medicare for more than $8.7 million in fraudulent billing for DME. According to the indictment, the defendants allegedly paid illicit kickbacks to patient recruiters to bribe beneficiaries to participate in the scheme. Once the individuals provided their Medicare information to recruiters, doctors and medical clinics conspiring with the defendants allegedly wrote prescriptions for medically unnecessary power wheelchairs, which they sold to the defendants for illegal kickbacks.
In Detroit, 18 defendants, including two doctors, a physician’s assistant and two therapists, were charged for their roles in fraud schemes involving approximately $49 million in false claims for medically unnecessary services, including home health, psychotherapy and infusion therapy. In one case, three individuals were charged in a $12 million scheme where they allegedly held themselves out to be licensed physicians – which they were not – and signed prescriptions for drugs and documents about purported psychotherapy they provided.
In Tampa, nine individuals were charged in a variety of schemes, ranging from pharmacy fraud health care-related money laundering. In one case, four individuals were charged for their alleged roles in establishing and operating four supposed healthcare clinics in Tampa, Fl. – Palmetto General Health Care Inc., United Healthcare Center Inc., New Imaging Center Inc. and Lord Physical Rehabilitation Center Inc. – which they allegedly used to steal more than $2.5 million from Medicare for surgical procedures that were never performed. The defendants allegedly billed Medicare for surgical procedures used to treat patients with high blood pressure by collapsing veins in the legs, but they did not actually perform the procedures.
In Chicago, seven individuals were charged, including two doctors, with a variety of health care fraud schemes.
In Brooklyn, N.Y., four individuals, including two doctors, were charged in fraud schemes involving $9.1 million in false claims. In one case, three additional individuals were allegedly involved in what is now alleged to be a $15 million scheme where massages by unlicensed therapists were billed to Medicare as physical therapy. Six defendants were previously charged in the scheme.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams comprised of attorneys from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, the Eastern District of Michigan, the Eastern District of New York, the Southern District of Texas, the Central District of California, the Middle District of Louisiana; the Northern District of Illinois, and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.An indictment is merely a charge and defendants are presumed innocent until proven guilty.
To learn more about HEAT, go to: www.stopmedicarefraud.gov.
McKeesport Man Charged with Possessing HeroinRead the Press Release
PITTSBURGH - A resident of McKeesport, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Sandy McNeal, 30, as the sole defendant.
According to the indictment, on or about Dec. 21, 2012, McNeal possessed with the intent to distribute a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Indicted for Making Bomb Threats at Minneapolis-St. Paul International Airport and MOARead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 22-year-old man, formerly of Maine, was indicted for making bomb threats at the Minneapolis-St. Paul International Airport and the Mall of America (“MOA”). Dana William Ashey was specifically charged with two counts of false information and hoaxes.
The indictment alleges that on April 12, 2013, Ashey threatened that bombs had been planted at both the airport and the MOA. According to a law enforcement affidavit filed in the case, the airport’s police dispatch received a bomb threat at 2:37 a.m., on April 12, 2013, with a warning that a bomb could go off by 3:00 a.m. At 2:42 a.m. that same day, another bomb threat was allegedly phoned in to security dispatch for the MOA. The caller in that instance purportedly stated that the bomb had been placed in a restroom. A search of the mall yielded no bomb. At 2:17 p.m., the mall’s switchboard operator allegedly received yet another bomb threat. Authorities traced the call and found the man still inside the MOA. The man, later identified as Ashey, reportedly possessed the cell phone that was used to deliver the bomb threats.If convicted, Ashey faces a potential maximum penalty of five years in federal prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the Minneapolis-St. Paul International Airport Police Department, the Bloomington Police Department, and the MOA Security. It is being prosecuted by Assistant United States Attorney Andrew R. Winter.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Magnolia Woman Pleads Guilty to Lying to the Secret ServiceRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before United States Magistrate Judge James E. Gates, KITRINA DIANE RHODES, 43, of Magnolia, North Carolina pled guilty to Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
In October of 2012 the United States Secret Service (USSS) was investigating RHODES’s brother in connection with various allegations of credit card fraud and identity theft. On October 11, 2012 a special agent with the USSS went to RHODES’s residence to locate RHODES’s brother’s laptop computer and other evidence pertaining to the credit card fraud and identity theft investigation. The special agent asked RHODES to show the USSS where her brother’s belongings were located inside the residence. RHODES took the USSS to a room used for storage and pointed to a laundry basket containing minimal clothing.
The investigation revealed that, in fact, RHODES was aware that her brother stayed in a different room in the home which contained various items of clothing and other possessions purchased by RHODES’s brother. The possessions included a 65-inch flat screen television purchased by RHODES’s brother with a fraudulent credit card. When questioned, RHODES falsely claimed that she had purchased the television. RHODES later admitted to lying to the USSS agent about these and other matters.
At the sentencing in this case, which is presently scheduled for the August 13, 2013 term of court in Greenville, RHODES faces up to five years of imprisonment, up to $250,000 in fines, and as much as three years of supervised release.
Investigation of this case was conducted by the United States Secret Service with the assistance of the Duplin County Sheriff’s Office. Assistant United States Attorney William M. Gilmore is prosecuting the case.
Lusby Man Sentenced to 6 Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Shawn Fred Crawford, age 48, of Lusby, Maryland, today to six years in prison followed by 10 years of supervised release for possession and distribution of child pornography. Judge Titus ordered that upon his release from prison, Crawford will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on July 25, 2012, Crawford distributed six images and 16 videos depicting children engaged in sexually explicit conduct. Following its investigation, the FBI executed a search warrant at Crawford’s home on September 18, 2012 and seized computers and other digital media containing approximately 4,700 images and 1,100 videos of children engaged in sexually explicit conduct, including children under the age of 12.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing and abused children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Leesville Financial Officer Sentenced to Five Years in Prison for Failure to Pay Company Payroll TaxesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Larry Wayne Bruce, 61, of Leesville, La., was sentenced on Monday by U.S. District Judge Richard T. Haik to serve five years in prison, followed by three years of supervised release for failing to pay corporate payroll taxes collected from Express Marketing Inc. (EMI) employees and for failure to pay his own personal taxes. Judge Haik also ordered Bruce to pay restitution in the amount of $190,783.96 to the owners of EMI and restitution in the amount of $294,070.98 to the IRS.
According to evidence presented during the guilty plea and sentencing, Bruce admitted to being responsible for not paying payroll taxes owed to the Internal Revenue Service while working as the financial officer for EMI in Leesville from 2003 to 2007. Bruce admitted the owners relied on him to pay the payroll taxes withheld from EMI employee paychecks and also admitted to taking more than $190,000 in excess of his salary from EMI during the time he failed to pay the taxes. By Bruce not paying the payroll taxes collected from EMI’s employees, EMI realized a profit of approximately $1 million per year. Bruce embezzled part of this money, but also manipulated company documents and reports to make EMI seem more profitable than it really was by withholding these tax liabilities from the owners and banks.Because of Bruce’s conduct, the loss to the IRS exceeds $3 million. The loss represents payroll taxes taken from EMI employee checks for several years but never paid to the IRS or reported to Social Security or other agencies. EMI collected the taxes from employees and kept the money under Bruce’s management.
Bruce also pleaded guilty to another count of the pending indictment, where he admitted to not paying his personal taxes from 2005 until he left the company in 2007.“The owners and employees of EMI relied on the defendant to fulfill his responsibility as financial officer for the company,” Finley said. “When Bruce chose to ignore his duty to pay the payroll taxes, he caused significant loss of tax revenue to the United States government and loss of future Social Security or Medicare benefits for the employees, all while embezzling extra money for himself. Yesterday, the defendant was held accountable for his actions, and in the end, the sentence represents appropriate justice. Further motivated by his greed, Bruce also willfully violated tax laws when he failed to file his personal income taxes for several years.”
“Our office is committed to vigorously prosecuting those who intentionally violate the tax laws. This should serve as a reminder to anyone who refuses to play by the rules that they will be prosecuted to the fullest extent of the law; Mr. Bruce is now a convicted felon with a long prison term to serve.”
The IRS conducted the investigation, and Assistant U.S. Attorney Myers P. Namie prosecuted the case.
Leader in Philadelphia Ambulance Scam Sentenced to 92 Months in PrisonRead the Press Release
PHILADELPHIA – William Hlushmanuk, a/k/a “Bill Le,” 35, of Philadelphia, was sentenced today to 92 months in prison for his participation in a health care fraud conspiracy involving ambulance services that were not medically necessary. Hlushmanuk pleaded guilty on February 5, 2013 to health care fraud and conspiring to commit health care fraud. Hlushmanuk admitted that from May 2006 through April 2011, he and his co-conspirators defrauded Medicare and Medicaid by billing for the unnecessary ambulance services. Hlushmanuk recruited and transported patients who were capable of walking, knowing that Medicare does not reimburse for patients who are ambulatory. Hlushmanuk also falsely registered the business in another person’s name because the Pennsylvania Department of Health had previously barred him from owning an ambulance company. As part of his plea agreement, Hlushmanuk admitted to acting as a leader of the conspiracy. In total, the conspiracy defrauded Medicare and Medicaid of approximately $5.4 million.
In addition to the prison term, U.S. District Senior Judge John R. Padova ordered Hlushmanuk to pay restitution in the amount of $5.4 million and ordered three years of supervised release.
The case was investigated by the FBI and the Department of Health and Human Services Office of the Inspector General. Invaluable assistance was provided by the Pennsylvania Department of Health. The case was prosecuted by Assistant U.S. Attorney Andrea Foulkes and Trial Attorney Adam L. Small of the Department of Justice’s Organized Crime and Gang Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525